Korean National Pension for Foreigners

What is the National Pension (국민연금)?

The Korean National Pension Service (NPS, 국민연금공단) operates Korea's public pension system. It is a mandatory social insurance program designed to provide income security for old age, disability, and survivors. Think of it as Korea's equivalent to Social Security (US), CPP (Canada), or state pension systems in Europe.

As a foreigner working legally in Korea, you are generally required to contribute to the National Pension. Your employer automatically deducts your share from your paycheck each month. The key question for most foreign workers is not whether to pay, but what happens to that money when you leave Korea.

Who Must Contribute?

Most foreigners employed in Korea between ages 18 and 59 must enroll in the National Pension. However, there are some exceptions:

• Citizens of countries without a reciprocal agreement that do not provide pension coverage to Korean nationals may be exempt.
• Holders of certain visa types (e.g., diplomatic visas, some short-term visas) may be exempt.
• Foreign students and those working fewer than the minimum monthly hours may not be required to contribute.
• Citizens of countries with pension totalization agreements may continue contributing to their home country pension instead, depending on the treaty terms.

2026 Contribution Rates and Caps

The total National Pension contribution rate in 2026 is 9.5% of your monthly income, split equally between employee and employer:

There is a monthly income cap for contribution purposes, and the National Pension Service revises it every July. For July 2026 to June 2027 the upper limit is 6,590,000 KRW per month (raised from 6,370,000 KRW) and the lower limit is 410,000 KRW. If your monthly salary is above the cap, you only pay pension on 6,590,000 KRW. Your maximum monthly employee contribution is therefore 313,025 KRW (6,590,000 x 4.75%). To see the pension line next to your tax and insurance deductions, enter your salary into our Korea Salary Calculator.

Lump-Sum Refund: Getting Your Money Back

Under Korean law a foreign national is not entitled to a lump-sum refund (반환일시금) by default. You can claim one only if you fall into at least one of three groups: your country has a social security agreement with Korea that covers the refund, your country is recognised under the reciprocity rule because it pays an equivalent benefit to Koreans, or you hold an E-8, E-9 or H-2 visa — in which case your nationality does not matter.

This is the opposite of what many people assume. Americans, Canadians, Germans and Filipinos can claim the refund; Vietnamese, Irish and Danish nationals generally cannot claim it on nationality alone. We list every country in the pension refund eligibility guide.

What you get back:Your own employee contributions (4.75%) plus interest. The employer's 4.75% contribution is not refunded -- it remains in the NPS fund. A small withholding tax (typically 3-5%) is deducted before payment.

Use our Pension Refund Calculator to estimate your refund amount.

Having an Agreement Is Not the Same as Getting a Refund

Korea has social security agreements with more than 40 countries, but they come in two forms and only one of them carries the equal-treatment clause that makes a lump-sum refund payable.

• Totalization agreements (가입기간 합산) — periods in both countries are added together so you can qualify for a pension. Most, but not all, also allow the lump-sum refund.
• Contribution-exemption agreements (보험료 면제) — these only stop you paying into both systems at once. They usually do not entitle you to a refund. Japan, China, the United Kingdom, the Netherlands, Italy, Mongolia and Uzbekistan are in this group. Switzerland is the notable exception: it is an exemption-only agreement, yet the refund is still paid.

The trap is the group in between. Ireland, Denmark, Spain, Sweden, Finland, New Zealand and Norway all have totalization agreements with Korea, and their nationals still cannot claim the lump-sum refund. Their contributions count toward a future pension instead.

Because the answer turns entirely on your specific nationality and visa, we keep a full country-by-country list — including the minimum contribution periods that apply to some countries — in the pension refund eligibility guide. If you are unsure, call the NPS international team on 063-713-7101.

How to Apply for a Pension Refund (Step by Step)

The pension refund is only one of the payouts due when you leave. Our Tax Refund When Leaving Korea Guide sets out the order to handle everything in, and the Severance Calculator covers the retirement allowance your employer owes you.

Required Documents

• Passport (original or certified copy)
• Alien Registration Card (ARC) or a copy if already surrendered
• Bank account details -- Korean account (bankbook copy) or overseas account (SWIFT code, account number, bank name and address)
• Lump-sum refund application form (available at NPS branches or downloadable from nps.or.kr)
• Proof of departure (flight ticket or departure confirmation from immigration) if applying before leaving Korea

Timeline: When Will You Get Your Money?

After submitting a complete application, NPS typically processes refunds within 14 to 30 business days. If you request a transfer to a Korean bank account, the deposit is usually faster (about 2 weeks). International transfers take longer due to additional processing and intermediary banks -- allow 3 to 5 weeks total.

Pro tip: If you still have a Korean bank account when you apply, have the refund deposited there first, then transfer it yourself. This is often faster and avoids international wire transfer fees charged by the intermediary banks. You can keep your Korean bank account open even after your ARC is cancelled (for a limited period, depending on the bank).

Frequently Asked Questions