South Korea's government has formed a task force to review inequities across the social security system, prompted by controversy over how the National Pension Service's retroactive contribution program applies to foreign nationals.
The Ministry of Health and Welfare said on the 16th that it held the first meeting of its Task Force for Reviewing and Improving Fairness in the Social Security System, where it discussed reform measures for major programs.
At the meeting, officials reviewed extending the reciprocity principle — now applied to mandatory National Pension enrollment and lump-sum refunds — to retroactive contributions as well. Foreign nationals can use the program on the same terms as Koreans, but many of their home countries do not operate such a system, meaning Koreans cannot make back-payments in those countries. The ministry cited that imbalance as the reason for the review.
Retroactive contributions allow subscribers to pay premiums for past periods when they failed to contribute to the National Pension, with those months then counted toward their enrollment record. Controversy over abuse of the system erupted after reports that a Chinese national enrolled in the National Pension for a single month, then made back-payments covering 119 months to qualify for an old-age pension, and also registered dependents including a spouse living abroad.
The task force also reviewed imposing a minimum period of actual residence in Korea before dual nationals and others who have lived abroad for extended periods can claim the basic pension after entering the country, citing fairness toward citizens who have lived in Korea and paid taxes.
The task force was launched to address fairness disputes arising because existing programs have not adequately reflected rapid social changes, including the growing number of foreign nationals and dual nationals. The aim is to prevent similar problems from recurring and to strengthen public trust. Chaired by the health minister and including working-level officials from major affiliated agencies, it will operate through October.
The ministry plans to reflect expert opinions and consult with the Office for Government Policy Coordination and other relevant agencies before finalizing its second round of fairness reform measures for the health and welfare sector. "We will once again thoroughly examine whether there are any institutional loopholes that run counter to the public's common sense and the principle of fairness," Health Minister Jung Eun-kyeong said.
