Korean National Pension guide for Foreigners

Nowadays, We can easily see foreigners around us in Korea according as becoming more and more globalized. More than 1 million per year foreigners come to Korea and they are on an increasing trend. As we can see a new word 'Multicultural family' on TV these days, Korea is becoming global country.

                                                                                                         The Immigration Bureau

They come here for various reasons like native english teacher and factory worker and so on. They also pay a tax and join the social security system like Koreans. But they might not know well about the system.

Let us take a look, what kind of foreigner can join the system and how to get refunds the Korean National pension(lump-sum refund) you paid, for foreign workers and prospective foreign workers.

We will take a look at the conditions, which workers have to join the pension scheme?

1. Nationals for a workplace-based insured plan

First, the workplace-based insured person means foreigners aged between 18 to 59 working and residing in Korea. They have to join the Korean pension scheme.
But Those nationals whose country can be excepted.

>> Norway, New Zealand, Dominica Rep., Germany Denmark, Latvia, Russia, Romania, Luxembourg, Libya, Lithuania, Liechtenstein, Monaco, Morocco, Moldova, Republic, Malta, United States of America, Barbados, Bahamas, Burma, Belgium, Bulgaria, Brazil, Serbia, Switzerland, Sweden, Spain, Slovakia, Slovenia, Argentina, Iceland, Ireland, Albania, Azerbaijan, Estonia, United Kiongdom, Austria, Uruguay, Uzbekistan, Ukraine, Israel, Italy, Japan, Jamaica, China, Czech Republic, Canada, Croatia, Cyprus, Tanzania, Trinidad and Tobago, Tunisia, Portugal, Panama, Poland, France, Finland, Philippines, Hungary, Australia, Hongkong

2. Nationals for a workplace-based insured plan, but excepted for an individually insured plan

The individually insured person means foreigners aged between 18 to 59 working and residing in Korea exclude the workplace-based insured person. Including the self-employed, Non-income earners aged 27 or older.

Those nationals whose country can join the workplace-based insured person, but in other case people can choose not to join that.

>> Ghana, Gabon, Grenada, Nigeria, Taiwan, Laos, Lebanon, Malaysia, Mexico, Mongolia , Vanuatu, Venezuela, Belize, Bolivia, Saint Vincent, Grenada, Sudan, Sri Lanka, Sierra Leone, Haiti, Algeria, Ecuador, El salvador, Yemen, Jordan, Indonesia, Zimbabwe, Cameroon, Kazakhstan, Kenya, Costa Rica, Cote d’Ivoire, Congo, Colombia, Kyrgyzstan, Thailand, Turkey, Togo, Paraguay, Peru 

3. Not compulsory Nationals

Those nationals whose country can choose not to join the Korea Natioal pesion.

>> Georgia, South Africa, Singapore, Nepal, East Timor, Maldives, Maldives, Bangladesh, Vietnam, Belarus, Saudi Arabia, Armenia, Ethiopia, Iran, Egypt, Cambodia, Tonga, Pakistan, Fiji

4. The Period-joint agreement Nationals

Those nationals whose country have benefits as following By the social security agreement, 
① They can pay premium only for their National pension scheme.
② They can sum up both period of pesions.
>> Germany, US, Canada, Hungary, France, Australia, Czech Republic

5. The Premium-exemption agreement Nationals

① Those nationals whose country can pay premium only for their National pension scheme.
② But They can not sum up both period of pesions.
>> United Kingdom, China, Netherlands, Japan, Italy, Uzbekistan, Mongolia

6. Exemption case by a visa

According to the visa, you can choose not to join the Korea Natioal pesion. Others have to join the pension.
>> A-1(Diplomacy), A-2(Government duties), A-3(Agreement), B-1(Visa exemption), B-2(Tourist visa), C-1(Short-term coverage activities), C-2(Short-term business), C-3(Short-term synthesis), C-4(Short-term working), D-1(Culture-art), D-2(Student), D-3(Industrial training), D-4(Training), D-6(Missionary work), F-1(Visiting), F-3(Accompany), G-1(ETC)

Now, Do you understand how to the Korean National pension scheme work? 

And are you curious how much do you pay? The answer is 9% of your mothly pay. But, half a workplace-based insured person's premium is paid by employer.
So the foreign woker will pay only the rest 4.5%.

Next, we will take a look at the benefits.

1. Nationals only taking a lump-sum refund
Those nationals whose country can take only a lump-sum refund at interest.

>> Ghana, Grenada, Vanuatu, Barbados, Venezuela, Bermuda, Belize, Bolivia, Saint Vincent, Sudan, Sri Lanka, Jordan, Indonesia, Zimbabwe, Cameroon, Kazakhstan, Kenya, Cameroon, Thailand, Turkey, Togo, Congo, Trinidad and Tobago, Philippine,  Hongkong, Switzerland(excepted person after 97.1.1), El Salvador(for premiums after 98.4.1 paid), Kazakhstan(for premiums after 98.1.1 paid)
 
2. Nationals who can choose between a Lump-sum refund and a pension
Those nationals whose country under the social security agreement can choose between a Lump-sum refund and a pension. So they can get refund when they go back to home country or become 60 years old (If he/she die, their family can take over).  It's possible to remit abroad.

>>Germany, US, Canada, Hungary, France, Australia, Czech Republic

 ※ for category 1 and 2 both Interest for the lump-sum refund
① during payment the premium : Interest of 3 year term fixed deposit (2009: 4%)
② period from finish the payment to get refund: Interest of 1 year term fixed deposit (2009: 3.7%)

3. Visa which possible to get a refund regardless of their nationality
Those people who have a visa can get a refund no matter their nationality is.
>> E-8(Employment for Training), E-9(Non-professional Employment), H-2(Visiting Employment)
※ H-2(Visiting Employment) is established for Korean residents oversears and faculty human resources and to settle down the license system for foreign wokers.

Lastly, Let us take a look how to get a refund~ : )

<Required documents>
① An Application for a Lump-sum Refund
② Passport
③ An alien Registration Card
④ A copy of bankbook or similar (registered in the applicant's name)

<1> You can apply for the refund to National Pension Service before you leave added a copy of an airline ticket. (the date of departure has to be in less than a month from the date of the claim)
<2> You can apply for the refund after you leave by mail within 5 years.

You can also apply for the refund by mail or agent, but some documents are added
More information and Application is prepared following,
http://www.nps.or.kr/ > English > National Pension > National Pension Scheme > Foreigners and Lump-sum Refund

                                                                                 By Hong Geu Rim / Univ. Student Reporter 
                                                                Republic of Korea Ministry of Strategy & Finance Blog

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