Last updated: August 2026

Table of Contents

Starting a job in Korea means learning about more than your salary and employment contract.

Your monthly payslip may include deductions for:

National Pension
National Health Insurance
Employment Insurance
Long-term Care Insurance
Income tax and local income tax

The first four items are connected to Korea’s broader social insurance system. Social insurance is a public system funded by legally required contributions to protect people against risks such as old age, illness, unemployment, and workplace injury.

For many foreign employees, the National Pension deduction raises two questions:

Do foreigners have to pay into Korea’s National Pension?
Can foreigners receive the money back when they leave Korea?

Many foreign residents are required to participate under rules similar to those for Korean citizens. However, a lump-sum refund is not automatically available to every foreigner.

Refund eligibility may depend on:

Nationality
Korean visa or status of stay
Contribution history
Whether Korea has a social security agreement with the person’s country
Whether the person’s country provides a similar benefit to Korean nationals
Whether the person contributed under an E-8, E-9, or H-2 visa
Whether the person permanently leaves Korea
Whether the person already qualifies for a monthly pension

The safest approach is to treat enrollment and refund eligibility as two separate questions.

Quick answer: Many eligible foreign employees are enrolled through payroll. In 2026, the total contribution rate for workplace-based members is 9.5% of the registered standard monthly income, normally divided equally between the employee and employer. A lump-sum refund is available only when the nationality, agreement, reciprocity, visa, and departure requirements are satisfied.

Korean National Pension Terms Explained

Term	Simple explanation
National Pension Service	The public institution that manages Korea’s National Pension Scheme. It is commonly abbreviated as NPS.
National Pension Scheme	Korea’s public pension system. Members make contributions while insured and may later receive an old-age, disability, survivor, or qualifying lump-sum benefit.
Foreign worker	In everyday English, this means a non-Korean employee. In some Korean laws, however, the term may refer more narrowly to workers in specific employment visa categories.
Pension contribution	The monthly amount paid into the National Pension system. For most workplace members, the employee and employer each pay part of the contribution.
Standard monthly income	The income figure officially registered with NPS and used to calculate contributions and benefits. It may not exactly match your current gross salary.
Workplace-based insured person	An employee who is enrolled through a covered employer.
Individually insured person	A person who is covered by the National Pension but is not enrolled as a workplace employee.
Lump-sum refund	A one-time payment of eligible National Pension contributions plus applicable interest.
Social security agreement	An agreement between Korea and another country that may prevent double pension contributions or coordinate pension rights.
Reciprocity	A rule under which Korea provides a refund to nationals of a country that gives Korean nationals a comparable benefit.
Certificate of Coverage	A document proving that a temporarily assigned worker remains insured under another country’s pension system and may be exempt from Korean contributions.
Residence Card	The identification card issued to many registered foreign residents. Older English guides may call it an Alien Registration Card or ARC.

What Is the Korean National Pension?

The Korean National Pension is a public social insurance program designed to provide income protection in cases such as:

Old age
Disability
Death of an insured person

It is not simply an individual savings account.

The contributions you pay do not remain in a personal bank-style account that you can withdraw whenever you choose. Payments and benefits are governed by the National Pension Act and related administrative rules.

The National Pension Service manages:

Enrollment records
Monthly contributions
Old-age pensions
Disability pensions
Survivor pensions
Lump-sum refunds
Social security agreements
Payments to overseas beneficiaries

A foreign resident aged 18 to under 60 who works at a covered workplace is generally enrolled as a workplace-based insured person unless an exclusion applies. Foreign residents who are not workplace members may, depending on their circumstances, be enrolled individually.

Do Foreigners Have to Join the National Pension Scheme?

Many foreign residents working in Korea are subject to compulsory National Pension coverage.

You will commonly be enrolled through your employer when:

You are aged 18 to under 60
You are legally employed in Korea
Your employer is covered by the National Pension Scheme
Your nationality or visa is not excluded
You are not exempt under a social security agreement

Once registration is completed, your share of the contribution normally appears as a deduction on your monthly payslip.

However, not every foreign resident is covered in exactly the same way.

Foreign residents who may be excluded

Possible exclusions include:

Certain trainees
International students
Diplomats
Foreigners whose home-country pension system does not provide comparable mandatory coverage to Korean nationals
Temporarily assigned workers who submit a valid Certificate of Coverage under a social security agreement

NPS reviews both nationality and status of stay. Two people from the same country may therefore receive different results because they hold different visas or have different employment arrangements.

How Much Do Foreign Employees Contribute in 2026?

The basic calculation is:

National Pension contribution = Standard monthly income × Contribution rate

In 2026, the total contribution rate for workplace-based insured persons is 9.5%:

Employee share: 4.75%
Employer share: 4.75%
Total: 9.5%

The employee’s share is normally deducted from salary, while the employer pays the other half.

Contribution example

Suppose your registered standard monthly income is KRW 3,000,000.

Contribution	Calculation	Amount
Employee share	KRW 3,000,000 × 4.75%	KRW 142,500
Employer share	KRW 3,000,000 × 4.75%	KRW 142,500
Total monthly contribution	KRW 3,000,000 × 9.5%	KRW 285,000

In this example, approximately KRW 142,500 would be deducted from the employee’s salary.

The employer would separately contribute the same amount.

What Is Standard Monthly Income?

National Pension contributions are not always calculated directly from the exact gross salary shown on your latest payslip.

Instead, NPS uses your registered standard monthly income.

This figure is based on income reported by the employee or employer and is used for both contribution and benefit calculations. It is generally rounded down to the nearest KRW 1,000.

The registered amount may differ from your current salary because:

Your salary recently changed
The registered income has not yet been updated
Annual recalculation timing applies
A legal minimum or maximum income limit applies
Payroll made a retroactive adjustment
You joined or left during the month

This is why your pension deduction may not equal exactly 4.75% of the gross salary shown on your current payslip.

Contribution income limits are adjusted periodically. Check the current NPS information rather than relying on an old online calculator.

How to Check Your Pension Deduction

Look for one of these terms on your payslip:

국민연금
National Pension
Pension contribution
NPS contribution

Then check:

The income amount used for payroll
The employee contribution deducted
Whether your employer registered you with NPS
Whether all months of employment appear in your pension history
Whether any correction or retroactive deduction was applied

A difference does not automatically mean that your employer made an error.

However, you should ask your payroll department or NPS if:

National Pension is deducted but no contribution record appears
Your registered name or passport details are incorrect
Several working months are missing
The registered income appears significantly lower than your actual salary
Your employer deducted more than the normal employee share without explanation

Keep copies of:

Employment contracts
Payslips
Residence Card
Passport
NPS contribution records
Documents showing changes of employer or visa

What Is a Social Security Agreement?

A social security agreement coordinates pension rules between Korea and another country.

The exact provisions are different for each country, but an agreement may provide one or more of the following benefits.

1. Prevention of double pension contributions

A worker temporarily assigned to Korea may be allowed to remain covered only by the pension system of the home country.

The worker or employer will usually need a Certificate of Coverage from the appropriate foreign authority.

Without this certificate, Korean payroll may still be required to enroll the employee in the Korean National Pension.

2. Totalization of contribution periods

Some agreements allow Korean and foreign contribution periods to be combined when checking whether a person has completed the minimum period required for a pension.

For example, a person may have:

Six years of coverage in Korea
Fifteen years of coverage in another participating country

An applicable agreement may allow the periods to be considered together for eligibility. Each country generally calculates and pays its own portion under its own laws.

3. Equal treatment and overseas payment

Some agreements provide treatment similar to that given to local nationals and allow qualifying pension benefits to be paid while the recipient lives abroad.

However, not every social security agreement provides the same rights.

An agreement that prevents double contributions does not necessarily:

Combine contribution periods
Create monthly pension rights
Guarantee a Korean lump-sum refund

NPS distinguishes between agreements that include benefit coordination and agreements that primarily prevent dual coverage.

Monthly Pension or Lump-Sum Refund?

A lump-sum refund is not always the only possible benefit.

A person with at least 10 years of insured coverage may qualify for a monthly Korean old-age pension after reaching the applicable pension age.

The normal pension age depends on year of birth and gradually rises to 65 for people born in 1969 or later.

A social security agreement may also help a person meet the minimum coverage requirement by combining eligible periods from Korea and another country.

Before applying for a refund, consider:

Do you expect to work in Korea again?
Could a social security agreement help you qualify for a monthly pension?
Are you close to completing 10 years of coverage?
Would a future pension be more valuable than receiving money now?
Would taking a refund remove useful insured periods from your record?

What happens to your pension record after a refund?

When a lump-sum refund is paid, the refunded period no longer remains active as an insured contribution period.

However, if you later become insured in Korea again, you may be able to return the previous refund plus interest to NPS. The corresponding insured period can then be restored.

This repayment is optional.

Who Can Receive a Lump-Sum Refund?

Foreigners are not automatically entitled to a refund simply because they stop working or leave Korea.

NPS provides three main eligibility routes.

Route 1: Social security agreement

A refund may be available when Korea has a social security agreement with the person’s country that provides Korean lump-sum refund rights.

Route 2: Reciprocity

A refund may be available when the person’s home country gives Korean nationals a benefit corresponding to Korea’s lump-sum refund.

Route 3: Eligible visa period

A refund may be available for insured periods during which the person held one of these statuses:

E-8: Seasonal Work
E-9: Non-professional Employment
H-2: Work and Visit

This visa-based route applies irrespective of nationality.

That final point is important. A person whose nationality is not eligible under an agreement or reciprocity may still qualify for contributions made while insured under E-8, E-9, or H-2 status.

The person must also meet a qualifying benefit condition, such as permanently leaving Korea, reaching the applicable age without qualifying for a pension, or death.

Quick Refund Eligibility Check

Ask these questions in order:

Question 1: Is my nationality covered by a refund agreement?

Yes: You may qualify, subject to the other benefit conditions.
No: Go to Question 2.

Question 2: Is my nationality included on the reciprocity list?

Yes: Check whether a minimum six-month or one-year insured period applies.
No: Go to Question 3.

Question 3: Did I contribute under E-8, E-9, or H-2?

Yes: Contributions made during the eligible visa period may qualify regardless of nationality.
No: A lump-sum refund may not be available.

Question 4: Am I permanently leaving Korea or meeting another qualifying event?

Yes: You may be able to file a claim.
No: Ending one job alone may not be enough.

Question 5: Do I already qualify for a monthly pension?

Yes: A lump-sum refund may not be the appropriate benefit.
No: Ask NPS to confirm your exact eligibility.

Countries Eligible Through Social Security Agreements

As of January 1, 2026, NPS lists the following 24 countries whose nationals may qualify for Korean lump-sum refunds under applicable social security agreements:

Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Croatia
Czech Republic
France
Germany
Hungary
India
Luxembourg
Peru
Philippines
Poland
Romania
Slovakia
Slovenia
Switzerland
Türkiye
United States
Uruguay

The presence of a country on Korea’s broader social security agreement list does not automatically mean its nationals receive lump-sum refunds.

Some agreements focus only on preventing double pension contributions.

Countries Eligible Through Reciprocity

NPS also lists countries and jurisdictions whose nationals may qualify under reciprocity rules.

At least six months of insured coverage

Belize

At least one year of insured coverage

Bhutan
Cameroon
Grenada
Jordan
Saint Vincent and the Grenadines
Thailand
Zimbabwe

Eligible regardless of insured period

Bermuda
Cambodia
Colombia
El Salvador
Ghana
Hong Kong
Indonesia
Kazakhstan
Kenya
Malaysia
Solomon Islands
Sri Lanka
Sudan
Trinidad and Tobago
Tunisia
Uganda
Vanuatu

These lists were published by NPS as of January 1, 2026. Nationality lists and minimum-period rules may change, so confirm your individual eligibility before departure.

Important Note for Chinese Nationals

China and Korea have a social security agreement, but it is primarily a contributions-only agreement.

The agreement can help certain temporarily assigned employees avoid double pension contributions. However, the Korea–China agreement itself does not provide Korean lump-sum refunds to Chinese nationals.

China is also not included in the NPS reciprocity refund list published as of January 1, 2026.

However, this does not mean that no Chinese national can ever receive a Korean lump-sum refund.

Because the E-8, E-9, and H-2 route applies irrespective of nationality, a Chinese national may still qualify for contributions made during an eligible visa period.

For Chinese nationals:
No refund is granted through the Korea–China agreement itself, but insured periods under E-8, E-9, or H-2 may still qualify. Ask NPS to review your complete visa and contribution history.

This distinction is especially important for people who changed visa categories while living in Korea.

Examples of Countries With Agreements but No Automatic Refund Right

Having a social security agreement with Korea does not always create refund eligibility.

For example, NPS states that the Korea–China agreement does not provide a Korean lump-sum refund to Chinese nationals.

NPS also explains that some other contributions-only agreements do not include refund provisions. Refund eligibility must therefore be checked using:

The exact agreement
The reciprocity list
The person’s visa history

Do not rely only on the sentence:

“My country has a social security agreement with Korea.”

The correct question is:

“Does the specific agreement provide lump-sum refund rights, or do I qualify through reciprocity or an eligible visa?”

How Much Will the Lump-Sum Refund Be?

An eligible foreigner receives a refund based on the insured contribution record plus applicable interest.

For workplace-based coverage, the official contribution record generally reflects:

The employee contribution
The employer contribution
Any corrections or adjustments
Applicable interest calculated under NPS rules

The interest calculation is connected to the rate for a three-year fixed-term deposit and generally covers the period from the month following each contribution to the month in which refund entitlement becomes effective.

Your final payment may differ from a simple total of the deductions shown on your payslips because:

Your payslip shows only the employee share
Your employer also contributed
Some months may have been adjusted
Some contributions may be unpaid
Interest is added
Your registered standard monthly income may have changed
Only certain visa periods may qualify

Ask NPS for an official contribution history and estimated benefit instead of relying only on your own spreadsheet.

Can You Receive a Refund Immediately After Resigning?

Not necessarily.

Resignation and refund eligibility are separate issues.

Before NPS can complete the refund process, your employer normally needs to report that you have lost workplace-based insured status.

Delays may occur when:

The employer has not reported your resignation
Your final contribution has not been processed
Your departure has not been confirmed
Your bank information is incomplete
NPS needs to review your nationality or visa history
Some contribution months are disputed

Ask your employer when it will submit the loss-of-coverage report.

How to Apply Before Leaving Korea

An eligible applicant can generally apply at an NPS office before departure.

NPS normally requires the departure date to be within one month of the application date.

Commonly required documents

Lump-sum refund application
Passport
Residence Card
Proof of a bank account in the applicant’s name
Proof that departure is scheduled within one month, such as a flight ticket

The applicant should generally apply in person at an NPS branch.

Step-by-step application process

Ask your employer about the resignation report.
Confirm when your workplace will report the end of your National Pension coverage.
Check your complete contribution history.
Make sure all working months appear correctly.
Confirm your eligibility route.
Ask whether you qualify through an agreement, reciprocity, or an E-8, E-9, or H-2 period.
Prepare your documents.
Bring your passport, Residence Card, flight information, and bank details.
Visit an NPS office.
Apply within one month before your scheduled departure.
Keep your receipt.
Save copies of all documents and the application acceptance certificate.
Keep your bank account open.
Do not close your Korean account until payment is completed unless you have arranged overseas remittance.

Applying before departure does not guarantee that the money will be paid before your flight.

How to Apply After Leaving Korea

A foreigner who has already left Korea may still apply.

The main options are:

Send the required documents to NPS by postal mail
Authorize an agent in Korea
Apply through a participating home-country social insurance institution

Applying by postal mail

Common documents include:

Lump-sum refund application
Passport copy
Proof of the applicant’s bank account
Overseas remittance application

Applying through an agent

Additional documents may include:

The agent’s identification
Agent details on the application
A signed power of attorney
The applicant’s passport copy
The applicant’s bank information

Documents issued overseas may require:

Notarization
Consular authentication
An Apostille
A Korean translation
Notarization of the translation

The exact requirements depend on the document type and the country where it was issued.

Applying Through a Home-Country Institution

NPS has refund-related memoranda of understanding with certain foreign institutions.

The NPS page lists participating institutions in:

Indonesia
Kyrgyzstan
Mongolia
Sri Lanka
Thailand
Uzbekistan

Eligible applicants in these countries may be able to submit claims through the designated home-country institution, reducing some authentication requirements.

This application channel does not create refund eligibility by itself. The applicant must still satisfy the underlying nationality, visa, and benefit rules.

Can You Receive the Refund at Incheon Airport?

NPS operates a limited airport refund service for eligible foreigners departing through Incheon International Airport.

The applicant must normally:

Be eligible for a lump-sum refund
Apply before departure
Be scheduled to leave through Incheon within one month
Select airport payment when applying
Have the employer report the loss of coverage by the day before departure
Depart during the airport service’s eligible operating schedule
Provide a backup Korean or overseas bank account

The refund is paid in supported foreign currency, not Korean won.

Important airport service limitations

Airport payment is unavailable:

On Saturdays
On Sundays
On public holidays
On the final business day of December

Flight-time restrictions also apply.

All applicants must first visit the NPS Incheon Airport Center in Terminal 1, even when departing from Terminal 2.

Because airport locations, currencies, operating hours, and payment procedures may change, verify the current process directly with NPS before relying on airport payment.

Is There a Deadline for Claiming a Refund?

Yes.

The ordinary claim period is generally five years from the date on which refund entitlement arises.

If an eligible person does not apply within that period, the normal claim can become time-barred.

NPS also describes limited later claim periods connected to reaching age 60 or the insured person’s death. These exceptions should not be treated as a reason to delay an application.

Apply as soon as reasonably possible after becoming eligible.

What to Do Before Your Final Day at Work

Use this checklist before leaving your Korean employer.

Contribution records

Confirm that your legal name is correct.
Confirm that your passport number is correct.
Check that all employment months appear.
Compare payslips with your NPS contribution history.
Ask about unpaid or missing months.
Confirm the date on which the employer will report your resignation.

Refund eligibility

Check the agreement-country list.
Check the reciprocity list.
Review your complete visa history.
Identify any E-8, E-9, or H-2 periods.
Check whether a Certificate of Coverage affected any period.
Ask whether you may qualify for a future monthly pension.

Documents

Passport
Residence Card
Flight reservation
Bankbook or bank statement
Overseas bank information
Refund application
Copies of submitted documents

Bank information

Confirm that the account is in your name.
Check whether your Korean account will remain active after departure.
Confirm the English spelling of the account holder’s name.
Check the SWIFT code for overseas remittance.
Check whether an intermediary bank is required.
Do not close the account before the payment is completed.

Common Mistakes Foreign Workers Make

1. Assuming every foreigner receives a refund

Leaving Korea does not automatically create refund eligibility.

2. Checking nationality but ignoring visa history

A person who does not qualify through nationality may still have eligible contribution periods under E-8, E-9, or H-2.

3. Assuming every social security agreement includes refunds

Some agreements only prevent double contributions.

4. Closing the Korean bank account too early

A closed or restricted account may delay or prevent payment.

5. Applying before the employer reports resignation

NPS may not be able to finalize the claim while the person remains registered as an active workplace member.

6. Treating the pension refund as a tax refund

The National Pension refund is separate from Korean income tax settlement.

7. Ignoring missing contribution months

A refund is based on the official NPS record, not only the deductions printed on your payslips.

8. Forgetting the five-year claim period

Waiting can create legal and documentation problems.

9. Taking a refund without considering future pension rights

A refund may remove contribution periods that could have helped you qualify for a monthly pension.

10. Assuming one current visa determines the entire result

NPS may need to review each contribution period according to the visa held at that time.

Frequently Asked Questions

Do all foreign employees in Korea pay National Pension?

No. Many foreign employees are subject to compulsory coverage, but exclusions may apply based on nationality, visa status, diplomatic status, student status, training status, or a social security agreement.

What is the National Pension contribution rate in 2026?

For workplace-based insured persons, the total rate is 9.5% of standard monthly income. The employee pays 4.75%, and the employer pays 4.75%.

Is the pension contribution based on my gross salary?

It is based on your registered standard monthly income. This amount may differ from your current gross salary because of registration timing, annual recalculation, rounding, and applicable income limits.

Can I receive a refund when my employment contract ends?

Not automatically. Ending employment is different from satisfying the lump-sum refund conditions. You generally need an eligible nationality, agreement, reciprocity rule, or visa period and a qualifying event such as permanently leaving Korea.

Can I receive a refund if my country has no agreement with Korea?

Possibly. You may qualify through reciprocity or for contribution periods under E-8, E-9, or H-2. If none of these routes applies, a refund may not be available.

Does a social security agreement always guarantee a refund?

No. Some agreements only prevent double pension contributions. The refund terms must be checked separately.

Can Chinese nationals receive a Korean pension refund?

The Korea–China social security agreement itself does not provide Korean lump-sum refunds to Chinese nationals, and China is not on the 2026 reciprocity list. However, contributions made under E-8, E-9, or H-2 may still qualify because that route applies irrespective of nationality.

Do I receive only the amount deducted from my salary?

The NPS refund calculation is based on the official contribution record plus applicable interest. For workplace coverage, the contribution record includes both the employee and employer portions.

Can I apply before leaving Korea?

Yes. An eligible applicant may generally apply at an NPS office when the scheduled departure date is within one month. Passport, Residence Card, bank information, and proof of departure are normally required.

Can I apply after returning to my home country?

Yes. Applications may be submitted by postal mail, through an authorized agent, or through certain designated foreign social insurance institutions. Authentication and translation requirements may apply.

Can I receive the refund at Incheon Airport?

Possibly. NPS provides a limited airport payment service for eligible applicants who apply in advance and meet the operating, resignation-reporting, flight-time, and document requirements. Payment is made in supported foreign currency.

How long do I have to apply?

The ordinary limitation period is generally five years from the date refund entitlement arises. Applying promptly is safer.

What happens if I receive a refund and later return to work in Korea?

You can be enrolled again if you become subject to National Pension coverage. You may also choose to return the previous refund plus interest to restore the refunded insured period.

Can Korean and foreign pension periods be combined?

Possibly. Some totalization agreements allow eligible contribution periods from Korea and another country to be combined when checking pension eligibility. The pension amount is normally calculated separately by each country.

Where can I ask questions in English?

The NPS lists the following English consultation number:

+82-2-6960-3250

The listed consultation hours are weekdays from 9:00 a.m. to 6:00 p.m., excluding the lunch period. Contact information and operating hours may change, so verify them on the official NPS website.

Final Takeaway

The Korean National Pension applies to many foreign residents in much the same way that it applies to Korean workers.

However, contribution and refund rules must be considered separately.

Before leaving Korea, answer these five questions:

Was I properly registered with NPS?
Is my nationality covered by a refund agreement or reciprocity rule?
Did I contribute under E-8, E-9, or H-2?
Would keeping the insured period help me receive a future monthly pension?
Has my employer reported the end of my workplace coverage?

For Chinese nationals, there is one additional question:

Did I have an eligible E-8, E-9, or H-2 insured period, even though the Korea–China agreement itself does not provide a refund?

The safest approach is to request an individual review from NPS before your final departure.

Your payslip alone cannot show every factor that affects refund eligibility.

Official References

National Pension Service: Foreign coverage, exclusions, eligible countries, visa-based refunds, application documents, airport service, and limitation period.
National Pension Service: Contribution rate and standard monthly income calculation.
National Pension Service: Old-age pension, minimum insured period, and lump-sum refund benefits.
National Pension Service: Social security agreement types and refund coordination.
National Pension Service: Korea–China social security agreement.
National Pension Service: English consultation contact.

Disclaimer

This article provides general information about the Korean National Pension system for foreign residents and reflects official National Pension Service information reviewed in July 2026.

It is not legal, tax, immigration, employment, pension-planning, or financial advice.

Contribution rates, income limits, nationality lists, visa classifications, social security agreements, application documents, airport procedures, contact information, and administrative interpretations may change.

Individual eligibility depends on factors including:

Nationality
Visa history
Insured periods
Employment reporting
Departure status
Previous refunds
Pension eligibility
The exact terms of an applicable social security agreement

Confirm your individual situation directly with the National Pension Service or a qualified professional before resigning, leaving Korea, closing a bank account, or making financial plans based on an expected refund.