Pension Controversy Grows over Short-Term Foreign Workers' Family Benefits

The controversy surrounding foreigners receiving Old-age Pension through the 'postponed payment' system is expanding to their overseas families. This system allows individuals to pay past premiums in a lump sum after working in Korea for just a month and securing National Pension eligibility. However, it has been discovered that families of these foreigners, even if they have never set foot in Korea, can receive 'family allowance' pension funds from the public pension funds.

This has raised concerns about the financial stability of the National Pension system, as population aging continues to accelerate. Reports indicate that Chinese beneficiaries using this system are also applying for the 'Dependents' Pension', which is a family allowance paid to those relying on a National Pension Old-age Pension beneficiary.

The Dependents' Pension is paid to spouses, children under 19, and parents aged 63 or older, regardless of their residency status in Korea. While this may seem like a legitimate benefit, the lack of verification processes allows for potentially fraudulent claims, as overseas families can register multiple dependents without proof of actual support.

The administrative and financial costs of processing these claims are also significant, as the National Pension Service bears the expenses of overseas remittance fees and currency exchange. These blind spots in the pension system have led to public outrage and criticism from within the service itself.