Employment-related Insurances

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Information as of 21 Feb, 2017

Definition

The national pension plan is part of the social security system which is designed to provide a degree of stability in everyday life. Under the national pension plan, the following pension types are paid: pension for the elderly, which is designed to make up for the loss of earned income due to old age; pension for the bereaved, which is designed to make up for the loss of income due to the death of the main income earner; and the disability pension, which is designed to make up for the loss of income due to the loss of ability to work due to disease or disability.

Social security agreements

This is a system designed to provide citizens of relevant countries with benefits, such as exemption from dual insurance subscription, adding up of the subscription period, equal treatment and guaranteeing of wage remittance out of the county, through the adjustment of differences between them. Social security agreements are divided into a totalization agreement and a contributions-only agreement, depending on the scope of application.

Countries that have signed social security agreements with South Korea (16): Canada, the United Kingdom, the United States, Germany, China, the Netherlands, Japan, Italy, Uzbekistan, Mongolia, Hungary, France, Australia, the Czech Republic, Ireland, and Belgium

Lump-sum refund

Foreigners meeting the relevant requirements are eligible to receive the pension for the elderly, the pension for the bereaved, and the disability pension as Koreans do under the National Pension Act. Effective from May 11, 2007, the country pays a lump-sum refund for foreigners returning home after subscribing to the National Pension Program as holders of E-8/Training employment, E-9/Non-professional employment, and H-2/Working visit. 

※ Effective from August 29, 2007, a lump-sum refund is paid to foreigners leaving the country upon request. (The application can be submitted one month before departure from the country by submitting a document verifying the plan for departure.)

  • Confirmation of conversion possible
  • Visit the National Pension Corporation branch office in your local area and apply for a rebate
  • Required documents : Wage payment request, passport, personal bank account information, plane ticket (or other document verifying plans for departure from Korea within one month)
  • Domestic bank account within one week and overseas bank account within one month
  • Rebate calculation method : National pension (employee + employer portion) + rate of interest
  • Confirmation process at branch office

※ The foregoing request may be made through an agent or by mail. Requests made through an agent or by mail follow a separate procedure for identification.