PENSION
It is possible to withdraw and collect your national pension once you leave Korea permanently. This is, of course, important to know for any foreigner working in Korea.
The way in which pension applies to you depends on your nationality. South Africa does not have a social security agreement with Korea. Thus South African Guest English Teachers are not eligible to participate in Korea's Pension Service. All other GETs are required to make monthly contributions, but only Americans, Australians and Canadians can claim back a lump sum after completion of their contract.
CHECK ONLINE
CHECK KOREAN NATIONAL PENSION ONLINE
You will need your online banking certificate or 공인인증서, which is made when you open your bank account in Korea and request Internet banking.
If you don’t have this, then you probably don’t have a bank account in Korea. If you do have a bank account in Korea and don’t have online banking, it’s as easy as going to your local bank branch and requesting online banking.
You don’t need to know Korean, but you should have some cultural literacy. If you’re a total newbie, bring a Korean friend or call your bank’s English help line (all banks have them now) and tell them to tell the teller what to do.
STEP 1
Visit the Korean National Pension Service site
At the top of the page, you want to go here: 전자민원이용(로그인필요).
This will take you to a page where you must create an ID.
STEP 2
Download these “security” programs. Every financial institution here makes you download these annoying ActiveX programs. I would do this at a PC bang or your work’s computer.
STEP 3
Click 개인 인증 and sign-up using your online banking certificate (공인인증서) or Kakao (much easier)
You need your Name, Foreigner Registration number, and mobile phone. However, if you’re a foreigner living in Korea with a long last name, it will get cut off.
If this is the case, you must check 공인인증서 and use your registration number AND banking certificate (I assume you have one already). Then you can create your ID.
STEP 4
Next, login using your new ID.
Then follow the red circles and look at the explanations to see what the amounts are.
This will give you a very easy way to check the state of your finances and how your Korean national pension contributions are going.
PENSION DEDUCTIONS
Pension Deductions
When you first arrive in Korea, your pension deduction will be calculated based on the pay level set out in your contract. Adjustments are made every July and are based upon your average monthly income for the previous tax year (which takes into account things like extra pay and housing allowance).
The adjustment is calculated as follows:
Total annual income/ 365 days X 30.5 (average days in a month) = Average monthly salary.
Average monthly salary X 0.045 = Adjusted deduction rate.
When your adjustment is made, there will be no back deductions like health care and tax.
HOW TO APPLY
Application for the Lump-sum Refund
Required documents
- Applying in Korea (before departing Korea):
Application form, a copy of your ID card (passport & Alien Registration Card), a copy of your bankbook, a copy of your plane ticket, etc. - Applying overseas (after departing Korea):
- Application form (notarized from a notary agency of the country in which you reside and attested to by the Korean Consulate or Embassy)
- A copy of your passport
- A copy of your bankbook
- ※ When you apply for a lump-sum refund through an agent in Korea, the application must be submitted only by mail in order to avoid extra administration fees and incorrect or false applications.
Contact Place
Regional offices of the National Pension Service (www.nps.or.kr ⇒ Regional Offices)
**DO NOT GO TO THEIR HEADQUARTER OFFICE. The service is not available there
visit their branch pension offices in your area.