top of page

Korea Social Security Programs for Expats: A Complete Guide


As an expat living and working in Korea, it’s essential to understand the country’s social security programs. These programs cover a range of benefits, including pensions, health insurance, and employment security. For expats, navigating Korea’s social security system may seem complex, but knowing what you’re entitled to—and what you’re required to contribute—is key to ensuring you’re fully covered during your time in the country.

Introduction to Korea’s Social Security System

Korea has a well-established social security system that provides a safety net for its citizens and residents, including expats. If you are working in Korea, it’s likely that you will be required to participate in several social security programs. These include the National Pension Scheme (NPS), National Health Insurance (NHI), and Employment Insurance. Contributions are typically shared between employees and employers, and coverage may extend to your dependents as well.

Key Programs:

  • National Pension Scheme (NPS): Retirement savings program.

  • National Health Insurance (NHI): Healthcare coverage.

  • Employment Insurance: Unemployment benefits and job security.

For more information, visit the National Pension Service website and the National Health Insurance Service website.


National Pension Scheme (NPS)

1. What Is the NPS?

The National Pension Scheme (NPS) is Korea’s mandatory public pension system that provides retirement benefits to workers. If you are an expat working in Korea, you are generally required to contribute to the NPS unless your country has a social security agreement with Korea that exempts you. Both employers and employees contribute a percentage of your salary to the NPS.

2. Who Needs to Contribute?

  • Expats who are employed by a Korean company.

  • Self-employed expats who meet certain income thresholds.

  • Exemptions: Expats from countries that have a social security agreement with Korea may be exempt from NPS contributions. For example, workers from the U.S., Canada, and certain EU countries may be exempt from paying into the NPS if they are already contributing to their home country’s pension system.

3. Contribution Rates

Program

Employer Contribution

Employee Contribution

Total Contribution

National Pension Scheme

4.5% of salary

4.5% of salary

9% of salary

National Health Insurance

3.545% of salary

3.545% of salary

7.09% of salary

Employment Insurance

Varies (usually 1.05%)

0.8% of salary

~1.6% of salary

Industrial Accident Insurance

Employer only pays

—

0.7% to 34% of salary, depending on the industry

4. Benefits and Refunds

The NPS provides retirement, disability, and survivor benefits. If you leave Korea before reaching the retirement age, you may be eligible for a lump-sum refund of your contributions, depending on your home country’s agreement with Korea. Countries like the U.S., Canada, and Germany have agreements that allow their citizens to receive their pension contributions back when they leave Korea.


National Health Insurance (NHI)

1. What Is NHI?

The National Health Insurance (NHI) is a mandatory healthcare system that provides coverage for medical treatments, hospital visits, and prescription drugs. Expats who reside in Korea for more than 6 months or work for a Korean employer are required to enroll in the NHI. The insurance premium is based on your income and is split between the employer and employee.

2. Who Is Covered?

  • All workers employed by a Korean company must enroll in the NHI.

  • Self-employed expats and students can also join the NHI voluntarily after residing in Korea for 6 months.

  • Dependents, such as spouses and children, can be added to your insurance plan.

3. Contribution Rates

The NHI contribution is typically around 7.09% of your salary, and this amount is split between you and your employer. Your share would be approximately 3.5%.

4. Benefits of NHI

NHI covers a wide range of medical services, including:

  • Doctor and hospital visits.

  • Prescription medications.

  • Dental treatments (some limitations apply).

  • Preventive care, including vaccinations and screenings.


Conclusion

As an expat in Korea, understanding the country’s social security programs is crucial for ensuring you’re properly covered and compliant with local laws. The National Pension Scheme, National Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance provide comprehensive benefits that will protect you during your stay in Korea.

Take Action:

  • Make sure you're enrolled in the appropriate social security programs through your employer.

  • Check if your country has a social security agreement with Korea to determine if you qualify for exemptions.

  • Keep track of your contributions and benefits to maximize the advantages available to you.

FAQ Section

1. Can I get a refund of my National Pension contributions when I leave Korea?

Yes, citizens of certain countries, such as the U.S., Canada, and Germany, can receive a lump-sum refund of their NPS contributions when they leave Korea, depending on their country's agreement with Korea.

2. Do expats have to pay into Korean social security programs?

Yes, most expats working in Korea are required to contribute to the National Pension Scheme, National Health Insurance, and Employment Insurance. Some exemptions apply depending on your country of origin and social security agreements.

3. What happens if I don’t enroll in the National Health Insurance?

Failure to enroll in the NHI can result in penalties, and you may be required to pay for any medical treatments out of pocket. If you stay in Korea for more than 6 months, you must enroll unless covered by a private insurance plan approved by the Korean government.

4. Does Employment Insurance cover expats?

Yes, expats who are employed in Korea are generally covered by Employment Insurance, which provides unemployment benefits and job training in case of job loss.

5. Can I avoid paying into the National Pension Scheme?

If your home country has a social security agreement with Korea, you may be exempt from contributing to the NPS. Otherwise, participation is mandatory for most expats working in Korea.



Commentaires

bottom of page