President Lee Jae Myung Says on Foreigners' Pension Back Payments, "Why Should We Be the Only Ones to Do It When Other Countries Don't?"

[Financial News] President Lee Jae Myung said on the 1st that South Korea should improve its system for foreigners' National Pension Service (NPS) back payments, stating, "There is no obligation for us to do it when other countries do not."
At the 38th State Council meeting held that day at Cheong Wa Dae, Lee said of the foreign pension back-payment issue, "What's more, this involves national finances and taxpayer money."
In response to an explanation that legal revisions would be needed to improve the system, he urged officials to "consider ways to handle it through subordinate rules such as enforcement decrees or implementation guidelines, without going to the National Assembly if possible." Lee said, "Whenever there is a problem, everything is sent to the National Assembly for legislation, so it takes too long." He added, "I do not understand why a law is needed just to recognize an exception, when I see this kind of benefit for foreigners as an exception."
The Ministry of Government Legislation, however, explained that the current law already includes provisions applying reciprocity in some areas, so extending reciprocity to other fields would likely require a legal revision.
The government first strengthened reviews of whether foreigners actually reside in South Korea. Health and Welfare Minister Jeong Eun-kyeong said, "We have revised and implemented the guidelines since July 31 so that the actual period of residence is strictly verified through immigration records and other data." She added, "We believe it is fundamentally appropriate to apply reciprocity between countries, so we will push ahead with revisions to the relevant laws and regulations."
Lee also pointed out that the foreign back-payment system had operated for years without much objection. He said, "It is regrettable that the issue was not identified within the internal system before the media and others raised it," and instructed each ministry to review existing systems from a 'red team' perspective.
According to the Ministry of Health and Welfare, foreigners account for about 2.2% of all NPS subscribers, while back-payment applicants make up about 0.5% of all applicants. Foreigners file about 500 back-payment applications a year, and even after the recent controversy, the number has not shown any unusual surge, with roughly five to 10 applications a day.

[email protected] Seong Seok-woo Reporter