HOME > Social Security Agreement > Overview
- 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 CoverageSecond, 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 would 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.)
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.)
⇒ Totalization of Coverage Periods
⇒ 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
- Most social security agreements are made between the governments of two countries. There are two types of agreements: Totalization Agreement and Contributions-only Agreement. A particular type of Agreement is made according to the scope of application deemed appropriate by the two contracting countries.
< 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 would 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), and Hungary (entry into force on March 1, 2007) fall,
and France (entry into force on June 1, 2007), Australia (entry into force on October 1, 2008) and
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) 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.
-
Country Current Status Type Agency of the other
Party and its web-siteEntered
into forceIran Signed on May 11, 1977 Entered into force on June 10, 1978 Contributions
-onlySocial Security Organization
(www.sso.ir)Canada Signed on January 10, 1997Entered into force on May 1, 1999 Totalization Social Development Canada
(www.hrdc-drhc.gc.ca)UK Signed on April 20, 1999Entered into force on August 1, 2000 Contributions
-onlyHM Revenue & Customs
(www.hmrc.gov.uk)
USASigned on March 13, 2000Entered into force on April 1, 2001 Totalization Social Security Administration
(www.ssa.gov)Germany Signed on March 10, 2000 Entered into force on January 1, 2003 Totalization Bundesversicherung sanstalt fur Angestellte(BfA)
(www.bfa.de)The
NetherlandsSigned on July 3, 2002Entered into force on October 1, 2003 Contributions
-onlySocial Insurance Bank(SVB)
(www.svb.org)Japan Signed on February 17, 2004Entered into force on April 1, 2005 Contributions
-onlySocial Insurance Agency
(www.sia.go.jp)Italy Signed on March 3, 2000 Contributions
-onlyNational Institute for Social Security (INPS)
(www.inps.it)Uzbekistan Signed on May 10, 2005 Entered into force on May 1, 2006 Contributions
-onlyMinistry of Social Protection Mongolia Signed on May 8, 2006Entered into force on March 1, 2007 Contributions-only State Social Insurance General Office
(www.ndaatgal.mn)Hungary Signed on May 12, 2006Entered into force on March 1, 2007 Totalization Central Administration of National Pension Insurance
(www.onyf.hu)France Signed on December 6, 2004
Entered into force on June 1, 2007Totalization Center of European and International Liaisons for Social Security (www.cleiss.fr) Signed on December 6, 2006
Entered into force on October 1, 2008Totalization
Centrelink
(www.centrelink.gov.au)Signed on December 14, 2007
Entered into force on November 1, 2008
Totalization
Czech Social Security Administration (CSSA)
Signed on October 31, 2007
Entered into force on January 1, 2009
Totalization
Department Social and Family Affairs
Belgium Signed on July 5, 2008
Entered into force on July 1, 2009
Totalization Office national de security
socialeProvi-
sional
MeasuresChina Entered into force on February 28, 2003 Contributions
-onlyMinistry of Labor and SocialSecurity
(www.mohrss.gov.cn)Signed,
but not
entered
into forcePhilippines Signed on December 15, 2005 Totalization Philippine Social Security System
(www.sss.gov.ph)Romania
Signed on September 11, 2008 Totalization Casa Nationala de Pensii si Alte Drepturi de Asigurari Sociale
(www.cnpas.org)Bulgaria
Signed on October 30, 2008
Totalization National Social Security Institute
(www.noi.bg)Slovak
RepublicSigned on February 9, 2009
Totalization Social Insurance Agency
(www.socpoist.sk)Poland Signed on February 25, 2009
Totalization
Social Insurance Institution
(www.zus.pl)
Since nationals of the contracting country (Canada, USA, Germany, Hungary, France, Australia, Czech Republic and Belgium) 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, 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 28 countries※ may receive the Korean Lump-sum refund. Please refer to Article 126 of the National Pension Act and Article 113 of the Enforcement Decree of the National Pension Act. ※ Venezuela (if at least 24 months of periods of contributions are completed.); Barbados, Cameroon, Congo, Grenada, Saint Vincent and Grenadines, 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, Jordan, Kazakhstan (limited to contributions paid after January 1998), Colombia, Hong Kong, Kenya, Philippines, Trinidad and Tobago, Turkey, Tunisia, Vanuatu; (as of July, 2009) In addition, persons who are employed at the 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.
