NPS Clarifies Stance Following Backlash Over Foreigner Retroactive Pension Payments

The National Pension Service (NPS) has stated that the rights of foreigners should not be discriminated against based on nationality, addressing the recent controversy surrounding the retroactive pension payment system for foreigners.

NPS Chairman Kim Sung-joo posted an article titled "The Purpose, Problems, and Supplementary Measures of the National Pension Retroactive Payment System" on his social media yesterday (the 30th), clarifying his stance on the controversy regarding retroactive payments by foreigners.

Chairman Kim stated that the retroactive payments by foreigners themselves should not be restricted based on nationality.

"Anyone working at a workplace in Korea, regardless of whether they are a Korean national or a foreigner, is required to pay National Pension and National Health Insurance premiums," Kim said. "Our citizens are also receiving the same obligations and benefits abroad."

He also cautioned against discussions on institutional improvement escalating into controversies over excluding specific countries, citing the number of applications for retroactive payments by foreigners in the first half of this year.

"By country, ethnic Koreans in China accounted for 792 cases, or 79.7%, followed by China with 6.4%, the United States with 4.7%, and Japan with 3%," he explained, adding, "Eighty percent of all retroactive payment applications by foreigners were from ethnic Koreans from China."

He pointed out, "Ultimately, restricting retroactive payments by foreigners leads to the question of whether it is socially acceptable for ethnic Koreans from China to receive the same level of social security benefits as domestic citizens."

However, he suggested that certain restrictions could be placed on methods where individuals pay premiums for a short period, such as the recently controversial "pay for 1 month and make retroactive payments for 119 months," and then make retroactive payments for a long past subscription period.

Previously, the retroactive payment system—originally introduced to bridge the retirement blind spots for vulnerable groups such as career-interrupted full-time homemakers—faced fairness controversies as some foreign subscribers paid for a history of just one month, lumped together and paid up to 119 months in arrears, and met the minimum 10-year subscription period required to receive old-age pensions.

(Reported by Kim Jiuk | Video by Hong Jin-young | Graphics by Yook Do-hyun | Produced by SBS Digital News | Footage source: NPS Chairman Kim Sung-joo's SNS)
※ Please note: This article was translated by AI and may contain errors.