Korean National Pension System: Do Foreigners Need to Pay?

If you're a foreigner working in South Korea, you may wonder whether you need to contribute to the Korean National Pension System (NPS). Understanding the National Pension for foreigners is crucial for complying with local laws and knowing your rights regarding retirement benefits and pension refunds. This guide explains how the system works, who must contribute, contribution amounts, and how to claim a lump-sum refund when leaving Korea.

What Is the Korean National Pension System?

The National Pension System in South Korea is a government-run program providing financial support to residents after retirement, or in cases of disability or death. The National Pension Service (NPS) manages this system, which functions similarly to social security systems in other countries.

The system is mandatory for income-earning residents aged 18 to 59, including most foreign workers in Korea, unless they're exempt through a social security agreement between Korea and their home country.

Do Foreigners Have to Pay Into the Pension?

In most cases, yes. You must contribute if you're working in Korea with a valid work visa (such as E-2 (teaching), E-7 (specialist), D-2 (student with part-time work), or D-10 (job-seeking)) and your employer is subject to pension contributions.

 

Exceptions:

You may be exempt if:

- Your country has a social security agreement with Korea that waives dual contributions.

- You're working temporarily or on certain visa types not covered by the law.

To verify your country's status, contact the National Pension Service or your local Korean Immigration Office.

How Much Do You Have to Pay?

The current contribution rate (as of 2025) is 9% of your monthly salary. This is split evenly:

- 4.5% paid by the employee

- 4.5% matched by the employer

For example, on a ₩2,000,000 monthly salary, the total pension contribution is ₩90,000—₩45,000 from you and ₩45,000 from your employer.

Your employer typically handles these payments automatically, with deductions shown on your monthly payslip.

 

Can Foreigners Get a Refund?

Yes, this is a major benefit for foreigners in the Korean pension scheme. When leaving Korea permanently, you may qualify for a lump-sum refund of your contributions.

 

Eligibility for a Refund:

- You must not be a permanent resident or married to a Korean national.

- You must be a national of a country that either:

- Has a reciprocal pension treaty with Korea, or

- Is included on the list of refund-eligible countries under Korean law.

Countries like the United States, Canada, Australia, Germany, and the Philippines are on the list.

 

To claim a refund:

1. Submit a lump-sum refund application to the NPS or online via their portal.

2. Provide a copy of your departure flight info, bank account details, passport, and Alien Registration Card.

Refunds are typically processed within a few months and can be transferred to your overseas bank account.

What If I Stay in Korea Long-Term?

If you plan to stay in Korea permanently, marry a Korean citizen, or become a naturalized Korean, your pension contributions will continue accumulating toward retirement. After age 60, you may qualify for monthly pension payments just like Korean citizens.

Key Points to Remember

✔️ Foreign employees in Korea typically must contribute to the NPS.

✔️ Contributions are split equally between employer and employee.

✔️ Eligible foreigners can claim a lump-sum refund when leaving Korea.

✔️ Long-term residents may receive monthly pension benefits after age 60.

✔️ Rules vary by visa type and nationality—verify with the NPS or Korean Immigration Office.

How to Check Your Pension Status

You can check your pension contribution records and manage your account through:

🔗 NPS Website (http://www.nps.or.kr) (English: https://www.nps.or.kr/jsppage/english/main.jsp)

📞 NPS English Customer Support: 1355 (in Korea)

🏢 Local NPS Office

Whether you're in Korea temporarily or long-term, understanding the Korean National Pension System is essential. Contributing isn't just a legal requirement—it can become a valuable financial asset when you leave Korea or retire here. For specific guidance about your status or rights, consult the National Pension Service or a trusted tax advisor.