National Pension (NPS)

Korea's public pension is centred on the National Pension run by the National Pension Service (NPS). Civil servants, military personnel, and private school staff are enrolled in separate occupational schemes, so most ordinary residents — including foreign-origin residents — fall under NPS. The same applies after acquiring Korean citizenship.

Mandatory enrolment

• All residents of Korea aged 18 to under 60 are subject to mandatory enrolment.
• Workplace insured (사업장가입자): Employees at workplaces with one or more workers. The contribution rate is 9% of income — split equally between employer and employee (so 4.5% on your side).
• Locally insured (지역가입자): Self-employed, freelancers, and certain unemployed residents. The full 9% is borne by the individual (though the declared income basis is more flexible than for workplace insureds).
• Voluntarily insured (임의가입자): Those not subject to mandatory enrolment but who join voluntarily for retirement security (e.g. full-time homemakers).

Coverage of foreign residents

• Foreigners residing in Korea are in principle subject to the same mandatory enrolment as Koreans.
• However, if your home country has signed a social security agreement (totalization agreement) with Korea — over 30 countries including the US, Germany, Japan, Canada, Australia, France, and the UK — you may be eligible for double-payment exemption or combination of contribution periods under certain conditions.
• Lump-sum refund (반환일시금): Nationals of non-agreement countries who permanently leave Korea or reach age 60 can receive a lump-sum refund of contributions paid (this is in principle not available for agreement-country nationals, who instead apply for combination of periods).

Eligibility and amounts

• Old-age pension: Requires at least 10 years of contributions. The eligibility age is 62 to 65 depending on year of birth (rising in stages to 65 by 2033).
• The benefit amount is calculated from the A-value (average income of all insureds) + B-value (your average income) + contribution period — a structure that is redistributive in favour of lower earners.
• Disability and survivor pensions are calculated separately (in cases of death or disability while insured).
• 기초연금 (Basic Pension): A separate scheme paying around ₩330,000/month to those 65+ in the bottom 70% of income (raised yearly). Review this together with your National Pension entitlement.

From a foreign-origin resident's perspective

• If you live in Korea for five years and then return permanently to your home country — for an agreement country, contributions are combined with your home pension; for a non-agreement country, you can claim the lump-sum refund.
• If you naturalise in Korea and then move abroad again before age 65, your National Pension entitlement is preserved (overseas payment is possible).
• Retirement pensions (DB / DC / IRP) are private-sector pensions separate from National Pension — check whether your employer offers them.
• If you receive a pension from your home country while resident in Korea, check whether the bilateral double-taxation treaty applies via the tax office.

Things to watch

• The 9% contribution rate has been frozen for decades, but discussions on rate increases and a higher eligibility age are ongoing for fiscal sustainability. Factor in possible changes when planning long term.
• Voluntary enrolment and retroactive contribution programs are powerful tools for retirement planning, but consider your cash flow carefully.

Official guidance: NPS (National Pension Service), Social Security Agreements (NPS)