Korea National Pension Lump-Sum Refund for Foreigners: Complete Guide (2026)
If you've been working in Korea and contributing to the National Pension Service (NPS), you may be entitled to claim back your contributions when you leave the country. This is called the lump-sum refund (반환일시금). Foreign nationals with fewer than 10 years of contributions can claim a full refund of their principal plus interest when departing Korea.
Table of Contents
- 1. What Is the Lump-Sum Refund?
- 2. Eligibility and Conditions
- 3. How the Refund Amount Is Calculated
- 4. Required Documents
- 5. How to Apply
- 6. When to Apply: Before vs. After Departure
- 7. Social Security Agreement Countries
- 8. Lump-Sum Refund vs. Pension Payments
- 9. Tax Deductions
- 10. Frequently Asked Questions
- 11. Consultation
1. What Is the Lump-Sum Refund? {#section-1}
The national pension lump-sum refund is a one-time payment of all your accumulated pension contributions (plus interest) to foreign nationals who do not qualify for regular pension payments — that is, those who contributed for fewer than 10 years or are under age 60 — when they permanently leave Korea.
| Item | Details |
|---|---|
| Program name | National Pension Lump-Sum Refund |
| Legal basis | National Pension Act, Article 77 |
| Administered by | National Pension Service (NPS) |
| Payment method | One-time lump sum |
| Amount | Principal contributions + statutory interest |
2. Eligibility and Conditions {#section-2}
Who Qualifies
| Condition | Details |
|---|---|
| Nationality | Non-Korean nationals |
| Contribution period | Fewer than 10 years (fewer than 120 months) |
| Departure status | Leaving or have already left Korea |
| Pension status | Have not started receiving pension payments |
Who Does NOT Qualify
| Situation | Reason |
|---|---|
| Contributed for 10+ years | Entitled to regular monthly pension instead |
| Already receiving old-age pension | Cannot receive both |
| Covered by a social security agreement | Different rules may apply |
3. How the Refund Amount Is Calculated {#section-3}
The refund equals total contributions paid plus interest calculated at the statutory rate.
Formula
Lump-Sum Refund = Total Contributions + (Total Contributions × Interest Rate × Period)
Interest Rate
The interest rate is announced by the NPS each year and is based on 1-year fixed deposit rates at major Korean banks.
Example Calculation
| Item | Example |
|---|---|
| Contribution period | 3 years (36 months) |
| Monthly contribution | KRW 135,000 (KRW 3M salary × 4.5%) |
| Total contributions paid | KRW 4,860,000 |
| Interest (approx. 3.0%) | ~KRW 291,600 |
| Estimated refund | ~KRW 5,151,600 |
For a precise estimate, contact the NPS helpline (1355) or check the "My Pension" app.
4. Required Documents {#section-4}
| Document | Notes |
|---|---|
| Lump-sum refund claim form | Available at NPS branches or on nps.or.kr |
| Passport copy | Valid passport |
| Alien Registration Card (ARC) copy | If registered |
| Proof of departure | Passport exit stamp or departure certificate (if applying after departure) |
| Bank account details | Korean account or overseas account (for international transfer) |
| Power of attorney | If applying through a representative |
5. How to Apply {#section-5}
Three Ways to Apply
| Method | Details |
|---|---|
| Visit NPS branch in person | Any NPS branch nationwide |
| Mail application | Send documents by post |
| Online application | NPS Electronic Civil Service (www.nps.or.kr) |
Step-by-Step Process
- Prepare all required documents
- Submit application in person, by post, or online
- NPS reviews the application (typically 2–4 weeks)
- Approval notice issued
- Funds transferred to designated account
International Bank Transfer
If you've already left Korea, you can request the refund be sent directly to your overseas bank account. You'll need to provide your bank name, account number, and SWIFT code.
6. When to Apply: Before vs. After Departure {#section-6}
| Timing | Possible | Notes |
|---|---|---|
| Before departure | ✅ Yes | When departure date is confirmed |
| After departure | ✅ Yes | Apply online or by mail from abroad |
| After returning to Korea | ✅ Yes | Can re-enroll if re-employed |
Note on Pre-Departure Applications
If you apply before leaving, payment is still processed after your departure is confirmed. Filing in advance saves time — the refund is processed once the NPS confirms your exit from Korea.
7. Social Security Agreement Countries {#section-7}
Korea has bilateral social security agreements with numerous countries. These agreements may affect your eligibility for the lump-sum refund.
| Agreement Type | Effect on Lump-Sum Refund |
|---|---|
| Premium exemption agreement | Paid nothing → no refund available |
| Contribution period totalization | Can combine periods to reach 10 years → consider monthly pension instead |
| Standard refund agreement | Lump-sum refund available |
Key Country Examples
| Country | Agreement Type | Lump-Sum Refund |
|---|---|---|
| USA | Premium exemption | Exempt from beginning → no refund |
| Germany | Period totalization | Can combine periods; pension may be available |
| Canada | Period totalization | Can combine periods; pension may be available |
| China | Standard refund | Lump-sum refund available |
| Vietnam | Standard refund | Lump-sum refund available |
Agreement terms vary by country. Always confirm with the NPS (1355) before applying.
8. Lump-Sum Refund vs. Pension Payments {#section-8}
If you've contributed for 10 or more years, you may have a choice between a lump-sum refund and monthly pension payments.
| Item | Lump-Sum Refund | Monthly Pension |
|---|---|---|
| When received | Immediately after departure | Monthly, starting at age 60 |
| Total amount | Principal + interest (lower) | Much higher over a lifetime |
| Condition | Under 10 years of contributions | 10+ years + age 60 |
| Overseas availability | Yes | Yes |
| Best for | Under 10 years or immediate cash need | Long-term retirement planning |
9. Tax Deductions {#section-9}
A portion of the lump-sum refund is subject to withholding tax.
| Item | Details |
|---|---|
| Tax on principal | No tax |
| Tax on interest | Withholding tax (~15.4% for residents) |
| Non-resident rate | 20% withholding on interest (reduced under tax treaties) |
Tax treatment may vary depending on your home country's tax treaty with Korea. Consult a tax professional for your specific situation.
10. Frequently Asked Questions {#section-10}
Q. I already left Korea. Can I still apply for the lump-sum refund? A. Yes. You can apply online at www.nps.or.kr or by mail from anywhere in the world. International bank transfers are also available.
Q. How long does it take to receive the refund? A. After submitting all required documents, it typically takes 2–4 weeks for review and then payment is transferred to your account.
Q. If I return to Korea and work again, does my old pension record count? A. Once you claim the lump-sum refund, those contribution periods are erased. If you return and work in Korea again, you start a new pension enrollment from scratch.
Q. Can I get a lump-sum refund even with 10+ years of contributions? A. If you have 10+ years, you are entitled to a monthly old-age pension rather than a lump-sum refund. Contact the NPS for guidance on special circumstances.
Q. Can a deceased foreign worker's family claim the lump-sum refund? A. Yes. Bereaved family members of a deceased foreign enrollee can claim a survivors' lump-sum payment. Contact the NPS with the relevant documents.
11. Consultation {#section-11}
The national pension lump-sum refund is an important right for foreign workers leaving Korea. Social security agreement applicability, overseas transfer procedures, and tax implications can be complex — professional assistance makes the process much smoother.
Vision Administrative Office provides comprehensive consultation on foreign worker visa status, social insurance matters, and Korean immigration procedures.
Free consultation: 02-363-2251
Related guides: