SEOUL — South Korea is moving to tighten its national pension rules following concerns that foreign residents could exploit a loophole to qualify for lifelong old-age pension benefits after making only a short period of contributions.

The government is considering limiting the national pension’s retroactive payment system to foreign nationals from countries that provide Koreans with access to similar arrangements.

The issue came to light after reports that some foreign nationals had used the system to make up contribution gaps and qualify for pension benefits, as reported by The Korea Times.

Under the current system, both Korean and foreign subscribers can make a lump-sum payment for missed contributions covering up to 119 months. Once their total contribution period exceeds 120 months, they become eligible for a monthly pension for life.

A recent media report highlighted a case involving a foreign national who worked in South Korea for just one month before using the retroactive payment system to secure lifelong old-age pension benefits.

Foreign nationals aged between 18 and 59 who work for South Korean companies or operate businesses in the country are eligible to participate in the National Pension Service (NPS). There were about 490,000 foreign subscribers as of last year.

NPS data submitted to Democratic Party lawmaker Kim Kyo-heung showed that the number of foreign nationals making retroactive pension payments surged from 530 in 2023 to 1,517 in 2025. The figure stood at 994 during the first half of this year.

However, a government investigation following the report found only three cases involving foreign nationals who had enrolled for one month before making retroactive payments covering 119 months.

The Health Ministry said on September 2 that only one of the three individuals, an ethnic Korean non-national who had remained in South Korea throughout the retroactive payment period, is currently receiving a pension.

Despite the small number of cases, the controversy has raised concerns over wider weaknesses in the pension system and prompted President Lee Jae Myung to call for measures to address the issue on September 1.

“Giving this kind of benefit to foreigners seems unusual. We have no obligation to offer retroactive payment when other countries don't offer it to our nationals,” Lee said during a Cabinet meeting.

Government agencies have since introduced measures aimed at preventing further abuse of the system.

Under rules that came into effect August 31, foreign nationals can no longer make retroactive payments for months when they were not physically present in South Korea.

Previously, eligibility was determined based on the period during which an individual held residency status. The revised rules instead take into account their actual stay in the country, with a month counting towards eligibility only if the person was present for at least 15 days.

The NPS will use applicants’ entry and exit records to verify their actual periods of stay.

The government is also working on legislative changes that would restrict retroactive payments to nationals of countries where Koreans are granted access to comparable payment arrangements.

No timeline has yet been announced for the proposed legal amendment, and the government has not identified which countries could be affected.

NPS head Kim Sung-joo said the system required changes but warned against allowing the controversy to fuel discrimination against foreign nationals.

“What matters is not nationality but premium payment and contribution period. Foreigners should not be excluded outright, nor given special treatment on that basis alone,” he said in a social media post.

He also expressed hope that the issue would not result in hostility towards foreign residents or citizens of any particular country.