South Korea tightens pension rules for foreign residents

South Korean authorities have addressed concerns regarding the potential abuse of the National Pension Service’s retroactive payment system by foreign nationals. Critics had raised alarms that individuals could work for only one month and then pay up to 119 months of retroactive contributions to secure a lifetime pension.

A full investigation by the Ministry of Health and Welfare revealed that only three individuals utilized the “one month of work plus 119 months of retroactive payment” method. Of these, only one person, a resident ethnic Korean, is actually receiving a pension, and that individual was confirmed to have resided in South Korea throughout the entire contribution period.

Despite the limited number of actual cases, the total volume of retroactive payment applications by foreigners has surged, rising from 530 in 2023 to over 1,500 projected for 2025. A significant majority of these applicants are ethnic Koreans from China.

In response, the Ministry of Health and Welfare and the National Pension Service have tightened eligibility requirements. Effective recently, retroactive payments will be based on actual residency rather than mere legal status. Applicants must now provide proof of entry and exit, and only months with at least 15 days of actual residence in South Korea will be recognized. Additionally, a principle of reciprocity will be introduced, and the frequency of survival checks for overseas pension recipients will increase from once to twice per year.