South Korea investigates National Pension additional payment exploitation claims

Following allegations that foreigners were exploiting the National Pension Service by making a single monthly payment and then using lump-sum additional payments (chunnap) to secure lifelong pensions, the South Korean government conducted a full investigation. The findings revealed that only three individuals met the specific criteria of one month of contribution followed by 119 months of additional payments.

Of these three, only one is currently receiving an old-age pension, and that individual is an overseas Korean who resided in South Korea throughout the entire 119-month additional payment period. The other two individuals, a spouse of a Korean citizen and an overseas Korean who previously held Korean nationality, also resided in the country during the period in question and are currently maintaining their eligibility without receiving benefits.

In response to the controversy, the Ministry of Health and Welfare and the National Pension Service have implemented stricter screening measures. As of August 31, additional payments for foreigners will only be recognized for months where they resided in South Korea for at least 15 days, and proof of immigration status is now mandatory. Furthermore, the government plans to introduce a reciprocity principle, allowing additional payments only for citizens of countries that grant similar rights to Koreans. The government is also considering broader reforms to the additional payment system for all citizens, such as limiting the maximum allowable months based on actual contribution history.