South Korea to pilot automatic old-age pension payments

The National Pension Service (NPS) will launch a pilot program in September to automatically distribute old-age pensions to eligible individuals, removing the need for manual applications. The service will initially target contributors with clear eligibility criteria, such as those with no unpaid premiums and no pending lump-sum refunds or additional payment requirements.

Administrative processes for pension income tax will also be streamlined. By linking electronic systems with the National Tax Service, the NPS will automatically identify premiums that did not receive income deductions. This allows the agency to subtract non-taxable amounts from the tax base before withholding tax, eliminating the need for recipients to submit manual certificates from tax offices.

To support elderly citizens in rural areas with limited mobility or financial access, a specialized welfare service will be introduced. In certain county-level regions within Gangwon, Jeonbuk, Jeonnam, and Gyeongnam, staff will personally deliver pension funds in cash to the homes of recipients aged 75 and older who use post office accounts. The NPS plans to expand the scope of automatic payments following an analysis of the pilot results.