How do foreign residents get back of their national pension payment?

Unlike health insurance, foreign residents who are engaged in economic activities in Korea and pay national pension payment are almost impossible to benefit from it. This is because it is difficult to live in Korea until the age of 64, when the national pension is eligible. 

Therefore, the interest of foreign residents, who are difficult to receive National Pension benefits, is growing of how to receive back the National Pension.

So the National Pension Service is operating a lump-sum refund system of the national pension for foreigners.

Under this system, when a foreigner permanently returns to his/her home country, interest will be added to the national pension payment and returned.

In order for a foreigner to receive his or her national pension back through this system: ①If the foreign national’s home country law provides for a lump-sum refund to Korean nationals ②If the social security treaty concluded between the Republic of Korea and the foreigner’s home country has provisions related to the lump-sum refund ③If you are enrolled in the National Pension Service by E-8, E-9, and H-2 status of residence.

The reason why regulation ① exists is that the national pension system adopts reciprocity between countries. For example, the Philippines and Indonesia allow foreigners to join their national pension in but do not return them back. Therefore, it is fundamental that Korea does not refund the national pension payment to migrants from the Philippines and Indonesia. However, it is still returned because it falls under the provisions of ② and ③.

Airport return system

In Korea, foreign residents can get their national pension back at the airport. This system, introduced in 2010, is to provide a lump-sum refund in cash at Incheon International Airport to foreigners returning to their home countries.

After the introduction of the service, about 51,000 foreign residents (as of June 2020) received their national pension back at the airport. You can apply at the National Pension Service counter at the airport.

How to claim before departure

If you submit documents proving that you plan to depart within one month, such as an airplane ticket, you can claim the national pension payment even before departure.

Foreigners must visit a branch of the National Pension Service and apply for refund, and they must submit a claim for ▲benefits bill ▲ a passport ▲a deposit account, and ▲a flight ticket (within 1 month). Payments are made within a week for domestic bank accounts and within one month for foreign bank accounts.

It is possible to claim by mail from overseas after leaving the country, but it is better to file a claim before departure because the procedure is complicated and takes a lot of time.

Convention’s home country claim

The National Pension Service allows foreigners from six countries that have signed a memorandum of understanding with Korea to apply for a lump-sum refund in their home country after leaving the country. Countries that have signed the MOU include Thailand, Sri Lanka, Mongolia, Uzbekistan, Kyrgyzstan, and Indonesia.

Reporter Song Hasung