Applications for "retroactive payment," a system allowing individuals to make a lump-sum payment for missed National Pension premiums from the past to extend their subscription period, are surging once again.
According to the National Pension Service, total retroactive payment applications combining both South Korean nationals and foreigners reached 244,329 cases last year.
The number of applications, which had dropped to 87,644 cases in 2023, ballooned by about 2.8 times in two years.
In the first half of this year alone, 106,838 cases were received.
Retroactive payment is a system designed to allow people who could not pay premiums due to unemployment, business suspension, or career breaks to pay those past amounts later.
To receive an old-age pension, the National Pension requires a minimum contribution period of 10 years, or 120 months or more.
It is a safety net mechanism created to help individuals with insufficient subscription periods fulfill their past unpaid terms and secure pension eligibility.
The growth trend among foreign subscribers is even steeper.
Applications for retroactive payments by foreigners surged 17.4-fold over a decade, rising from 87 cases in 2016 to 1,517 cases in 2025.
In the first half of this year alone, 994 cases were received.
Foreigners who actually began receiving pensions through retroactive payments have also increased rapidly.
Foreigners who met the minimum 10-year subscription period through retroactive payments to secure old-age pension eligibility increased from 27 people in 2016 to 2,250 people as of June this year.
This is a scale that has grown 83.3 times over the span of 10 years.
Pension authorities are considering revising the system to apply not only to foreigners but also to South Korean nationals.
Measures being discussed include recognizing retroactive payments in proportion to the actual premium contribution period or reducing the current upper limit for retroactive payments, which is set at 119 months.
This is because if the practice of securing pension eligibility by joining for a short period and paying a lump sum spreads, controversies over equity with people who have faithfully contributed over a long period could intensify.
The government plans to formulate a reform proposal for the retroactive payment system based on the results of a research study.
Reported by Kim Jiuk | Video by Lee Yoo-jin | Graphics by Lee Su-min | Produced by SBS Digital News
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