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HOME > Social Security Agreement > Overview

Objectives

• A social security agreement is concluded to benefit the nationals of contracting countries through the coordination of those countries' different social security systems. It has four basic objectives, as follows:

• First, the agreement aims to reduce the financial burden on persons (e.g., detached employees or self-employed persons working abroad for the short term) who would otherwise have to pay social security payments to both countries. As a result, contributions can be paid to only one system of either country. (However, detailed contents can vary depending on the respective agreement.) -> Elimination of Dual Coverage
• Second, the agreement aims to help persons, either long-term residents in foreign countries or immigrants, who have divided their careers between two countries. Those people can acquire benefit eligibility according to the total periods of coverage in both countries. Without totaling the periods, they may not acquire benefit eligibility under one country's national law alone as a result of insufficient periods of coverage. (However, detailed provisions can vary depending on the respective agreement.) -> Totalization of Coverage Periods
• Third, the agreement aims to improve the conditions of benefit eligibility. It ensures that nationals of one contracting country are treated equally with nationals of the other contracting country in the application of the other contracting country's social security system, regarding eligibility for and the payment of benefits. (However, detailed provisions can vary depending on the respective agreement.)-> Equal Treatment
• Fourth, the agreement aims to guarantee that benefits are remitted overseas without restrictions even though a person stays in the other contracting country. Therefore, the person who has acquired benefit eligibility will not receive reduced benefits only because he/she stays in the other contracting country. (However, detailed provisions can vary depending on the respective agreement.)->Overseas Remittance of Benefits

Types

• [ Totalization Agreement ]
• - This social security agreement includes provisions on totaling of periods of coverage between two countries as well as the elimination of dual coverage.
• - A person from one contracting country who is employed or self-employed in the other contracting country for the short period of time, such as a detached person, can normally be covered only under one contracting country's pension system during his/her working period. For example, an employee sent to work in a foreign country by his/her company, which is based in his/her home country, will only have to pay into his/her home country's social security system.
• - In addition, a person who has coverage in two countries may acquire benefit eligibility by totaling his/her periods of coverage in both countries. Without totaling the periods, the person may not acquire benefit eligibility under one country's national law alone as a result of insufficient periods of coverage.
• - The agreements with Canada (entry into force on May 1, 1999), the United States (entry into force on April 1, 2001), Germany (entry into force on January 1, 2003), Hungary (entry into force on March 1, 2007), France (entry into force on June 1, 2007), Australia (entry into force on October 1, 2008), Czech Republic (entry into force on November 1, 2008), Ireland (entry into force on January 1, 2009), and Belgium (entry into force on July 1, 2009) and Poland, Slovakia and Bulgaria (entry into force on March 1, 2010), Romania (entry into force on July 1, 2010) fall under the totalization category.

• [ Contributions-Only Agreement ]
• - This social security agreement only includes elimination of dual coverage of social security systems but does not provide totaling of periods of coverage.
• - A person from one contracting country who is employed or self-employed in the other contracting country for the short term, such as a detached person, can normally be covered only under one contracting country's social security system during his/her working period.
• - Provisions concerning benefits such as Totaling of Periods of Coverage, Protection for Entitlement to Benefit, Equal Treatment, and Payment of the Lump-sum refund are generally not included.
• - The agreements with the United Kingdom (entry into force on August 1, 2000), China (entry into force of provisional measures on February 28, 2003), the Netherlands (entry into force on October 1, 2003), Japan (entry into force on April 1, 2005), Italy (entry into force on April 1, 2005), Uzbekistan (entry into force on May 1, 2006) and Mongolia (entry into force on March 1, 2007) focus on the elimination of dual coverage burdens.

Status

Lump-sum refund

• Since nationals of the contracting country under a totalization Agreement (Canada, USA, Germany, Hungary, France, Australia, Czech Republic, and Belgium, Poland, Slovakia, Bulgaria and Romania) are treated equally with Korean nationals regarding benefit payment, they are eligible for a lump-sum refund as well as pension benefits. Therefore, if you (a national of Canada, USA, Germany, Hungary, France, Australia, Czech Republic, or Belgium, Poland, Slovakia, Bulgaria or Romania) pass away, permanently leave Korea, reach age 60, or meet other conditions of entitlement for the lump-sum refund before qualifying for the Old Age, Disability or Survivors pension under the National Pension Act, the lump-sum refund may be paid to you or your survivors (in case of your death).
• ※ The payment of the lump-sum refund to Irish nationals cannot be paid in accordance with the agreement.
• If your country does not have a social security agreement with Korea, you are not treated equally with Korean nationals regarding the lump-sum refund, but are treated according to a reciprocity rule. Under this rule, only the nationals from 29 countries may receive the Korean lump-sum refund.
• Venezuela (if at least 24 months of periods of contributions are completed.); Barbados, Cameroon, Congo, Grenada, Saint Vincent and Grenadines, Jordan, Thailand, Togo, Zimbabwe (if at least 12 months of periods of contributions are completed); Belize (if at least 6 months of periods of contributions are completed); Bermuda, Ghana, Malaysia, Sri Lanka, Sudan, Switzerland (limited to those who have lost his/her insured status since January 1, 1997), El Salvador (limited to contributions paid after April 1998), India, Indonesia, Kazakhstan (limited to contributions paid after January 1998), Colombia, Hong Kong, Kenya, Philippines, Trinidad and Tobago, Turkey, Vanuatu, Tunisia
• In addition, persons who are employed at a workplace covered by the National Pension as a foreign worker stipulated in the Act on the Employment, etc. of Foreign Workers (fall under E-9 or H-2 visa status under the Enforcement Decree of the Immigration Control Act) and persons who are employed at the workplace covered by the National Pension as a person who has status of sojourn eligible for doing industrial trainee activities and doesn't desert designated training places during required training period' under Article 10 of the Immigration Control Act (fall under E-8 visa status under the Enforcement Decree of the Immigration Control Act) are eligible for the lump-sum refund.