Korea seeks to toughen pension eligibility for foreign residents as loophole found
The government is tightening regulations on the national pension following concerns that a legal loophole could let foreign residents unfairly secure old-age pension benefits. It is considering limiting a retroactive payment system only to foreign nationals whose countries also provide reciprocal measures to Koreans in those nations. The controversy emerged recently as some foreign nationals were…
The Korea Times reports that the Korean government is considering tightening regulations on the national pension system in response to a legal loophole that may enable foreign residents to secure old-age pension benefits unfairly. The issue came to light when it was discovered that some foreign nationals had taken advantage of the retroactive payment system, which allows them to pay missed premiums in a lump sum and qualify for a lifelong monthly pension once their contribution period exceeds 120 months.
The controversy intensified after a news outlet reported on a case where a foreign national who worked in Korea for only one month had secured a lifelong pension through this loophole. Currently, foreign nationals aged 18 to 59 who work for a domestic company or run their own business are eligible to join the National Pension Service (NPS) schemes.
Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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