Following Crackdown on Foreign Nationals’ ‘Workarounds’ to Receive Pension Benefits, Government to Search for Loopholes Across Welfare System

[Financial News] Debate over fairness surrounding foreign nationals’ receipt of pension benefits is expanding beyond the National Pension Service to a broader review of the “eligibility principles” governing social security programs, including the Basic Pension, National Health Insurance and Emergency Welfare Assistance. The government has launched a comprehensive review to determine whether institutional gaps allow foreign nationals to receive excessive or unreasonable benefits in light of their periods of residence in Korea and their contributions, such as insurance premium payments, rather than merely addressing individual cases.
According to political sources on the 13th, President Lee Jae Myung recently emphasized at a Cabinet meeting and a senior secretaries’ meeting at Cheong Wa Dae, "Social security programs operated with funds jointly provided by the people must be designed precisely and fairly so that no one can gain an unfair advantage and citizens are not placed at an unreasonable disadvantage."
Accordingly, the Ministry of Health and Welfare (MOHW) is reviewing the eligibility requirements for foreign nationals and institutional loopholes in major social security programs, including basic livelihood security, Emergency Welfare Assistance, the Basic Pension and the National Pension Service, as well as National Health Insurance and Long-Term Care Insurance.
The key issue is whether cases could arise that conflict with fairness when the level of contribution to the system—such as actual residence in Korea or payment of social insurance premiums—is considered, even if the individuals meet the formal eligibility requirements under current regulations.
An MOHW official said, "In accordance with the president’s instructions, each program division is carefully examining the eligibility requirements for foreign nationals and loopholes across the system," adding, "We plan to closely screen major programs, including Emergency Welfare Assistance, pensions and National Health Insurance, to identify blind spots that may not align with public sentiment or could undermine fairness, and then formulate measures to improve them."
The recent controversy over foreign nationals’ receipt of National Pension Service benefits directly prompted the government to broaden the scope of its review to the social security system as a whole.
Authorities previously strengthened the requirements for foreign nationals to make voluntary back payments of National Pension Service contributions. Instead of simply maintaining a valid status of stay, applicants must now demonstrate that they actually resided in Korea for at least 15 days per month. The measure is intended to prevent cases in which individuals receive pension benefits by meeting only the formal requirements without actually residing in Korea.
MOHW Minister Jeong Eun-kyeong has also stated that the relevant system would be revised to prevent abuse, such as receiving pension benefits after residing in Korea for only a short period, given that the National Pension Service is designed to guarantee retirement income for people residing in Korea.
Meanwhile, the government said it would also consider the burden on low-income groups and the purpose of each program so that access to social security is not excessively restricted for foreign nationals who have lived in Korea for an extended period or are struggling to make a living as it strengthens fairness.
[email protected] Lee Dong-hyeok Reporter