National Pension Service

Main Contents of the Social Security Agreement Between Korea and Hungary

Agreement Administrative Arrangement

History of the Agreement with Hungary

Sep. 2004 : Agreed on negotiating a Social Security Agreement between Korea and Hungary, sent a Korean proposal to Hungary
Feb. 2005 : Received a Hungarian proposal
Mar. 2005 : Agreed on the principle of the Agreement between both countries
Dec. 2005 : Held the first round of Negotiation Meetings for the Agreement in Hungary
May. 2006 : Signed the Agreement on Social Security between Korea and Hungary
Oct. 2006 : Received a written notification from Hungary that Hungary has complied with all requirements for entry into force of this Agreement
Dec. 2006 : Provided a written notification to Hungary that Korea has complied with all requirements for entry into force of this Agreement
Dec. 2006 : Held meetings for the Implementation of the Agreement between Agencies of both countries
Jan. 2007 : Signed the Administrative Arrangement for the Agreement
Mar. 2007 : Social Security Agreement between Korea and Hungary entered into force

Applicable Legislation

With respect to Korea,
- the National Pension Act
- the Employment Insurance Act(with regard to Part II only; Exemption From Dual Coverage)
With respect to Hungary,
- the legislation concerning the payment of social insurance contributions
- the legislation concerning social insurance pensions
- the provisions of the act on fostering employment and unemployment benefit in respect to payment obligations related to unemployment benefits.(with regard to Part II only; Exemption From Dual Coverage)

Personal Scope of this Agreement

This Agreement shall apply to any person who is or who has been subject to the legislation of either Korea or Hungary, and to the dependents and survivors of such a person, irrespective of their nationality. Therefore, any person such as a national of the Contracting Country, a stateless person, a refugee or a national of a third country who is or has been subject to the legislation of either Contracting Country shall be covered by this agreement with his/her dependents and survivors.

※ For more information, you may refer to the section Text of Agreement

Exemption from Dual Coverage

In general, an employee is subject to the legislation of a Contracting Country in which he/she is employed.
A self-employed person is subject to the legislation of a Contracting Country in which the person ordinarily resides.
If a person is employed in the territory of one Contracting Country and is self-employed in the territory of the other Contracting Country for the same period, he/she is subject to the legislation of the Contracting Country in which he/she originally resides.
A detached worker is exempt from coverage under the legislation of the Contracting Country which he/she is sent to for less than 3 years if he/she is covered under the legislation of his/her home country. This 3-year limit can be extended to 6 years with the proper consent between Agencies of the both country.

※ For more information, you may refer to the section Agreement or Guide for Exemption Application

[ Countries that employees and the self-employed pay their contributions to ]

Countries that employees and the self-employed pay their contributions to
Type	Work Status	Coverage
Employee	employed in Hungary
	you are employed and working in Hungary	Hungary
	you are employed in Korea and sent to work in Hungary for less than 3 years (a 3-year extension is available)	Korea
	you are employed in Korea and sent to work in Hungary for more than 3 years (without getting approval for an extension)	Hungary
	you are self-employed in Korea ordinarily residing in Korea and you are also employed in Hungary	Korea
	you ordinarily reside in Korea but you are employed in both Korea and Hungary	Korea
	employed in Korea
	you are employed and working in Korea	Korea
	you are employed in Hungary and sent to work in Korea for less than 3 years(a 3-year extension is available)	Hungary
	you are employed in Hungary and sent to work in Korea for more than 3 years(without getting approval for an extension)	Korea
	you are self-employed in Hungary ordinarily residing in Hungary and you are also employed in Korea	Hungary
	you ordinarily reside in Hungary but you are employed in both Korea and Hungary	Hungary
Self-employed	Self-employed in Hungary
	you ordinarily reside in Korea but are self-employed in Hungary	Korea
	you ordinarily reside in Korea but are self-employed in both Korea and Hungary	Korea
	you are employed in Korea ordinarily residing in Korea but are self-employed in Hungary	Korea
	Self-employed in Korea
	you ordinarily reside in Hungary but are self-employed in Korea	Hungary
	you ordinarily reside in Hungary but are self-employed in both Korea and Hungary	Hungary
	you are employed in Hungary ordinarily residing in Hungary but are self-employed in Korea	Hungary

Benefits under this Agreement

Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force. This is possible due to totalization of coverage in both countries.

Korean National Pension Benefits under the Social Security Agreement

If you have more than 12 months of insured period in Korea but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Korean pension system, you may be able to qualify for Korean benefits by totalizing periods of coverage under the Korean pension system and the Hungarian pension system. However, those periods creditable under the Hungarian pension system, must not coincide with the periods under the legislation of Korea.

Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries.
Hungarian Pension Benefits under the Social Security Agreement

If you have more than 12 months of insured period in Hungary but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Hungarian pension system, you may be able to qualify for Hungarian benefits by totalizing periods of coverage under the Korean pension system and the Hungarian pension system. However, those periods creditable under the Korean pension scheme, must not coincide with the periods under the legislation of Hungary.

Your benefit is calculated by dividing the Hungarian periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries.
A person who is or has been subject to the laws of one Contracting Country and who resides within the territory of the other Contracting Country shall, together with his dependents, receive equal treatment with the nationals of the other Contracting Country in the application of the laws of the other Contracting Country regarding the eligibility for and the payment of benefits.
A Korean Lump-sum refund is paid to Hungarian nationals. However, whether a Lump-sum refund is paid to a national of a third country depends on the reciprocity principle stipulated in the Korean National Pension Act.
However, since there is no provision for a Lump-sum refund in the legislation of the Hungarian Social Insurance Pension System, Korean people cannot be paid a Lump-sum refund from the Hungarian Social Insurance Pension System. Instead, the contributions to the Hungarian Pension System may be calculated toward pension payments according to the legislation of the Hungarian Social Insurance Pension System.

※ For more information, you may refer to the section Agreement or Guide for Exemption Application

Agencies of this Convention

As regards Korea,
- National Pension Service (NPS)
As regards Hungary,
- Central Administration of National Pension Insurance (ONYF) : www.onyf.hu
- National Health Insurance Fund (OEP) : www.oep.hu

Guide for Exemption Application

How to be Exempt from Hungary Pension Contributions (social insurance contributions)

If you are subject to the applicable Korean legislation of the Social Security Agreement and temporarily work in Hungary, you must get "a Certificate of Coverage under Social Security Agreement" from the National Pension Service of Korea and submit(show) it to a Hungarian Agency in order to be exempt from the Hungarian social insurance and employment insurance contributions.

A request for a Korean Certificate of Coverage

If you are an employee, your employer must request a Korean Certificate of Coverage.

If you are self-employed, you yourself must request a Korean Certificate of Coverage.
- Who requires a Korean Certificate of Coverage under the Social Security Agreement?
  - An employee who is sent to work in Hungary for a certain period (for less than 3 years)
  - An employee who was sent to work in Hungary for less than 3 years but who has his/her working period extended (for 3 years or less). In this case, mutual consent between both countries is required.
  - A person who ordinarily resides in Korea and is self-employed in Hungary
  - A person who ordinarily resides in Korea and is employed or self-employed in both Hungary and Korea
  - Some workers or members of a crew on an aircraft who can be exempt from Hungarian social insurance contributions and unemployment insurance contributions under the Social Security Agreements between Korea and Hungary
- How to request a Korean Certificate of Coverage under the Social Security Agreement?
  
  The employer in Korea or self-employed person must request a Korean Certificate of Coverage by
  1) visiting the National Pension Service of Korea with the required documents; or
  2) sending the required documents to the National Pension Service of Korea by mail or fax.
  - National Pension Service, Center for International Affairs, 6th Floor, Kukmin-Yeonkum Building, 180, Giji-ro, Deokjin-gu, Jeonju-si, Jeonbuk-do, 54870, Korea
  - Fax (063)900-3404
- Required Documents
  - "Application for Certificate of Coverage under Social Security Agreement"
  - Documents to confirm the employee's detachment such as a Detachment Order.
  ※ "Application for Certificate of Coverage under Social Security Agreement" is available on our website → Social Security Agreement → Forms or you can get them by visiting NPS's regional office and by copying the form in the manual brochure at the NPS.
Showing the Certificate of Coverage to the Hungarian Agency

In Hungary, since an employer or a self-employed person is normally responsible for reporting and paying social insurance contributions, you don't have to pay contributions for the periods of coverage specified on the Korean Certificate of Coverage under the Social Security Agreement. However, when the Hungarian agency requests the evidence for the exemption, you have to show that Certificate of Coverage.

If you or your employer has already paid contributions for the previous exemption period, for a certain period he/she is able to request a refund according to the Hungarian agency's procedure. However, in some cases, there could be limitations on the period regarding retroactive exemptions or refunds, so we recommend that you request the exemption allowing a suitable amount of time.

How to be Exempt from the Korean Pension Contributions and Employment Insurance Contributions

If you are mandatorily covered by the Hungarian social insurance system and you would like to be exempt from coverage under the Korean National Pension and Employment Insurance Scheme, you must get a Certificate of Coverage under the Social Security Agreement from the Hungarian Agency and submit it to the Korean National Pension Service.

A request for a Hungarian Certificate of Coverage

If you are an employee, your employer must request a Hungarian Certificate of Coverage.

If you are self-employed, you yourself must request a Mongolian Certificate of Coverage.
- Who requires a Hungarian Certificate of Coverage under the Social Security Agreement?
  - An employee who is sent to work in Korea for a certain period (for less than 3 years)
  - An employee who is sent to work in Korea for less than 3 years but who has his/her working period extended (for 3 years or less). In this case, mutual consent between both countries is required.
  - A person who ordinarily resides in Hungary and is self-employed in Korea
  - A person who ordinarily resides in Hungary and is employed or self-employed in both Korea and Hungary
  - Some workers or members of a crew on an aircraft who can be exempt from Korean National Pension and Employment Insurance contributions under the Social Security Agreements between Korea and Hungary
- How to request a Hungarian Certificate of Coverage under the Social Security Agreement?
  
  After contacting the Hungarian Agency by phone or fax, you must request a certificate with the required documents according to the agency's procedures.
- Issuing Agency of the Hungarian Certificate of Coverage
  - National Health Insurance Fund Tel. 06-1-350-2001 Fax. 06-1-359-6654
  - www.oep.hu
Submission of the Certificate of Coverage to the Korean National Pension Service

If you are a worker, an employer in Korea (if self-employed, you yourself) must submit an " application of exemption" as well as an original copy of the "Hungarian Certificate of Coverage", and a copy of your identification to the International Center or the regional office by visiting or by sending a registered letter. (Because an original copy must be submitted, a facsimile or a copy of the Hungarian Certificate will not be accepted)

If you submit a Hungarian Certificate of Coverage, you are exempt from coverage under the Korean National Pension and the Employment Insurance scheme for the period shown on the Certificate of Coverage. If you have already paid contributions before you submit the Certificate of Coverage, the amount of the contributions already paid can be transferred to your due contributions or refunded. However, in accordance with the regulations of the National Pension Scheme, the right to request a refund of over-collected amount is valid only up to 5 years from the day following the processing of a qualification change, therefore, we recommend that you request exemption within the required period.

※ Information here on our website is a general guide. You can get more information at the International Center of the NPS or any regional office of NPS.

Application for Korean Benefits under the Agreement

If you have periods of coverage both in Korea and Hungary but don't have enough periods of coverage under the Korean pension system to qualify for Korean pension benefits, you may be able to qualify for Korean benefits by submitting the following required documents as long as you meet the requirements for entitlement based on totalization of periods under both the Korean pension system and Hungarian pension system.

Requirements for entitlement classified by the types, eligible persons, the method of filling out the forms and required documents are introduced respectively under each benefits link above.

A claimant must submit an "Application for Korean Benefits under the Korea-Hungary Social Security Agreement" to the NPS or to the Hungarian agency.

At the time of applying for benefits by mail, you are recommended to be fully aware of the requirements for the Benefit Application by asking the NPS by phone. In this way, you will ensure the proper preparation of the documents and avoid any unnecessary delays in payments. Otherwise, you might waste time in correcting errors or omissions on the Application.

You can download the "Application for Korean Benefits under the Korea-Hungary Social Security Agreement"from our website or get it at the NPS's regional office, the Embassy of the Republic of Korea Abroad, or a Hungarian agency.

Old-age Pension

Eligible Persons

If you meet the following conditions for the benefits by totalizing both countries' periods of coverage, you may be able to apply for the Korean Old-age pension under the Social Security Agreement. However, to be eligible to have your Korean periods counted, you must have completed at least 12 months.

Old-age Pension
Type	Totalized period of Coverage	Age of the first benefit payment	Other Cases
Full Old-age Pension	20 years or more	age of 60 (55)	less than 65, not engaged in income-earning activities
Reduced Old-age Pension	from 10 years to less than 20 years	age of 60 (55)	less than 65, not engaged in income-earning activities
Active Old-age Pension	10 years or more	age from 60 to 65 (55-60)	engaged in income-earning activities
Early Old-age Pension	10 years	age of 55	less than 65, not engaged in income-earning activities
Special Old-age Pension	from 5 years to less than 10 years	age of 60 (55)	more than certain years of age

Filling out the Application Form and Required Documents

If you want to apply for an Old-age pension, you must fill out Part A (General information), Part B (Application for an Old-age Pension), Part I (To be signed by the applicant) on the "Application for Korean Benefits under the Korea-Hungary Social Security Agreement" and submit it with the following required documents.
Required documents
- ID such as Alien Registration Card Passport, or Resident Registration Card.
- A copy of your Korean bank account information
  
  ※ If you want overseas remittance, you must fill out the Overseas Remittance section Part G (Method of Payment of Benefit) and submit a copy of your foreign bank account information.
- In the case of Early Old-age Pension
  - If you are an employee: an Employment Contract (a Verification of Employer), and an Income Withholding Taxes Receipt (or a Salary Book or a bank account where your salary is deposited into, etc.) are also required.
  - If you are an employer: a Certificate of Suspension or a Cessation of Business, or documents to confirm suspension or cessation are also required.
- If you have any dependents supported by you,
  - Documents to confirm your family relations: a copy of your family register, a copy of the Registration of Korean National Residing Abroad, verification of residence, verification of common law status, etc.
  - Documents to confirm your dependence status: a Certificate of Studentship, a Certificate of Holding Office, a Certificate of Medical Care, a copy of the Certificate of Business Registration, a copy of the Building Registration Certificate, documents to confirm special reasons for living separately, a remittance statement of the financial institution (communications and portal services), etc.
  - Documents to confirm your disability: a medical report for disability under the Agreement(a Hungary medical report is acceptable)
※ If you have a certificate of disability registration falling under the 1st or 2nd degree based on the Korean Welfare of Disabled Persons Act prior to the date on which reasons of payment occur (e.g., the date when an Old-age pensioner reaches pensionable age, when a Disability pensioner has finished his/her medical treatment or 2 years have passed since the first medical examination, or in the case of Survivor Pension, when the person who is/was a contributor dies) it is considered as a document of verification for disability.

Divided Pension

Eligibility

If you lived with your ex-spouse for 5 years or more while your spouse was paying contributions, and your spouse is a beneficiary of Old-age Pension under the social security agreement, you may apply for a divided pension if you meet the following conditions for the benefits. However, to be eligible for the benefits, you must have completed at least 12 months of coverage in Korea.
You are entitled to the payment of benefits
- When you become 60 years of age after having divorced an Old-age pensioner.
- When you divorce an Old-age pensioner after turning 60 years of age.
- When your ex-spouse acquires Old-age pension entitlement after you become 60 years of age.
- When you become 60 years of age after your ex-spouse has acquired Old-age Pension entitlement.
Filling out the Application Form and Required Documents

If you want to apply for a Divided Pension, you must fill out Part A (General information), Part C (Application for a Divided Pension), Part I (To be signed by the applicant) on the "Application for Korean Benefits under the Korea-Hungary Social Security Agreement"and submit it with the following required documents.
Required documents
- ID such as Alien Registration Card and Passport or just Resident Registration Card.
- A copy of the your Korean bank account information
  
  ※ If you want overseas remittance, you must fill out the Overseas Remittance section Part G (Method of Payment of Benefit) and submit a copy of your foreign bank account information.
- If you are Korean: documents to confirm your divorce such as a copy of your family register, etc.
- If you are a foreigner or an overseas Korean: documents to confirm the period of marriage and occurrence of divorce such as a certificate of marriage, a certificate of residence report of overseas Korean national, or a confirmation of residence.

Disability Pension

Eligible Persons

If you have periods of coverage in Korea and come to be disabled while you are covered under the Hungarian Pension System, you may apply for the Korean Disability Pension under the Social Security Agreement. However, to be eligible for the benefits, you must have completed at least 12 months of coverage in Korea.
Filling out the Application Form and Required Documents

If you want to apply for a Disability Pension, you must fill out Part A (General Information), Part D (Application for a Disability Pension), Part I (To be signed by the applicant) on the"Application for Korean Benefits under the Korea-Hungary Social Security Agreement" and submit it with the following required documents.
Required documents
- ID such as Alien Registration Card and Passport, or just Resident Registration Card
- A copy of your Korean bank account information
  
  ※ If you want overseas remittance, you must fill out Overseas Remittance section Part A-7 (Method of Payment of Benefit) and submit a copy of your foreign bank account information.
- Documents to verify your disability history
  - Documents sent by the German Agency in relation to your disability(Medical report for disability, X-ray, CT or MRI film, etc.)
  - A Medical report that verifies disability (This form was established under the social security agreement between Korea and Hungary. It is to be used if the documents from Hungary are not sufficient)
- If the accident occurred while you were working
  - Documents to confirm whether you are eligible for compensation under the Industrial Accident Compensation Insurance Act, or the Labor Standard Act or the Seamen Law
- If you receive compensation from a person who caused you harm, you need the related documents
  - the decision of the court or a copy of the settlement reached with the person who caused your disability.
- If you have any dependents supported by you,
  - Documents to verify your family relations: a copy of your family register, a copy of the Registration of Korean Nationals Residing Abroad, a Verification for Residence, a Verification for the marriage in effect, etc.
  - Documents to confirm your dependence status: a Certificate of Studentship, a Certificate of Holding Office, a Certificate of Medical Care, a copy of Certificate of Business Registration, a copy of Building Registration Certificate, documents to confirm special reasons for living separately, a remittance statement of the financial institution (communications and portal services), etc.
  - Documents to confirm your disability: a medical report for disability under the Agreement (a Hungary medical report is acceptable)

Survivor Pension

Eligible Persons

A surviving dependent of the person who meets the following conditions can apply for a Survivor pension. However, to be eligible for the benefits, he/she must have completed at least 12 months of coverage in Korea
Surviving dependents of this person are entitled to the payment of benefits
- When a person with insured periods under the Korean National Pension Scheme dies while he/she was covered under the Hungarian Pension System.
- When a person with a totalized insured period of 10 years or more under the Korean and the Hungarian pension system dies after losing Insured status.
- When a person with a totalized insured period of less than 10 years under the Korean and Hungarian pension systems dies within 2 years after the first medical examination during the insured period due to disease or injury that occurred during the insured period of the Hungarian pension system. This case even applies if a person dies within 2 years after the first medical examination which is made within 1 year after that person's insured status was discontinued.
- When a person who is a beneficiary of the Old-age Pension or the Disability Pension with 1st or 2nd degree of disability under the Agreement dies.
Filling out the Application Form and Required Documents

If a person wants to apply for a Survivor Pension, he/she must fill out Part A (General Information), Part E (Application for a Survivor Pension), and Part I (To be signed by the applicant) on the Application for Korean Benefits under the Korea-Hungary Social Security Agreement and submit it with the following required documents.
Required documents
- ID such as Alien Registration Card and Passport, or just Resident Registration Card
- A copy of your Korean bank account information
  
  ※ If you want overseas remittance, you must fill out the Overseas Remittance section Part G (Method of Payment of Benefit) and submit a copy of your foreign bank account information.
- Documents to confirm the beneficiary's death
  - a copy of the family register, a medical report for death, a confirmation of the corpse, a certificate of death
- Documents to verify your family relations: a copy of your family register, a copy of the Registration certificate for overseas Koreans, a Verification for Residence, a Verification for the marriage in effect, etc.
- Documents to confirm your surviving dependence status: a Certificate of Studentship, a Certificate of Holding Office, a Certificate of Medical Care, a copy of Certificate of Business Registration, a copy of Building Registration Certificate, documents to confirm special reasons for living separately, a remittance statement of the financial institution (communications and portal services), etc.
- Documents to confirm disability: a medical report for disability (a Hungarian medical report is acceptable)
- Documents to show the result of the first medical examination
  - a medical report for death, a confirmation of the corpse, a certificate of death and other documents to confirm your first medical examination date. (If a Korean national dies in Korea, a report for health insurance medical examination and treatment, etc. is required)
- If the accident occurred while working
  - documents which verify whether the beneficiary is eligible for compensation under the Industrial Accident Compensation Insurance Act, the Labor Standard Act or the Seamen Law
- If you receive compensation from a person who caused you harm, you need the related documents
  - the decision of the court or a copy of the settlement reached with the person who caused your disability.

Lump-sum refund

Eligible Persons

If you are a Hungarian national and meet the following conditions, you may apply for a Lump-sum refund under the Agreement. However, once you have received a Lump-sum refund, your concerned insured periods are not totalized for the Korean National Pension system or the Hungarian pension system. Therefore it may be advantageous for you to apply for a Pension instead of the Lump-sum refund.
The following persons are entitled to the payment of benefits
- A Hungarian national with less than 10 years of totalized insured periods under the Hungarian and Korean pension systems who reaches 60 years of age, provided that he/she is not eligible for the old-age pension.
- A Hungarian national who loses his/her insured status under the Korean National Pension and returns or plans to return to Hungary, provided that he/she is not eligible for the old-age pension.
- A surviving dependent of the Hungarian national who died with totalized insured periods less than 10 years under the Hungarian and Korean pension systems (only when this surviving dependent is not entitled to the Survivor Pension)
- A surviving dependent of the Hungarian national who died with more than 10 years of insured periods under the Hungarian and Korean pension systems, but only when this person is not eligible for the Survivor Pension due to the non-payment of contributions.
Filling out the Application Form and Required Documents

If you want to apply for a Lump-sum refund, you must fill out Part A (General information), Part F (Application for a Lump-sum refund), Part H (To be signed by the applicant) on the Application for Korean Benefits under the Korea-Hungary Social Security Agreement and submit it with the following required documents.
Required Documents
- ID such as Alien Registration Card and Passport, or just Resident Registration Card
- A copy of your Korean bank account information
  
  ※ If you want overseas remittance, you must fill out the Overseas Remittance section Part G (Method of Payment of Benefit) and submit a certificate of your foreign bank account information
- When you apply because you are leaving Korea
  - before leaving Korea: a copy of air ticket
  - after leaving Korea: a copy of your passport (the part which shows the immigration exit stamp dated after you discontinued your Korean insured status)
- When a survivor applies because of death
  - Documents to verify your family relations: a copy of your family register, a copy of the Registration of Korean Nationals Residing Abroad, a Verification for Residence, a Verification for the marriage in effect, etc.
  - Documents to confirm your dependence status: a Certificate of Studentship, a Certificate of Holding Office, a Certificate of Medical Care, a copy of Certificate of Business Registration, a copy of Building Registration Certificate, documents to confirm special reasons for living separately, a remittance statement of the financial institution (communications and portal services), etc.
- Documents to confirm disability: a medical report for disability (a Hungarian medical report is acceptable)
※ The information here on our website is a general guide. You can get more information about exemption of Coverage at the International Relations Team or any regional office of the NPS.

Application for Hungary Benefits under the Agreement