Korean Job Discussion Forums

kiwiluvesyew · Joined: 29 Apr 2008

where do you go in America once you are back from South Korea to get a pension refund? I've found info on Canada and from within S.K., but I have no idea where to go to start the pension refund or overseas remittance process now that I am back home in Louisville, KY. Do I go to the nearest social security office??? Do I really still need proof that I left S.K. since I am already home?

MattAwesome · Joined: 30 Jun 2008

you should have filled out that paperwork before you left. you have to sign a bunch of stuff and show your itinerary. then they send you a check or transfer it your home bank.

Big Mac · Joined: 17 Sep 2005

I've made the application in Canada through Human Resources Development Canada (HRDC). But I'm not sure about the U.S.

It is definitely possible to do at home though.

Find out what government department is responsible for your country's social security agreement with Korea. Maybe there is a government hotline like there is in Canada that will answer all general questions about the government. That's how I found out where to go in Canada.

You could also call the pension office in Korea and they should be able to give you the name of the department to contact.

My understanding is that once you leave Korea you cannot deal directly through the Korean pension office anymore...you have to make the application through your home government. It will almost certainly take much longer than it would have if you would have applied in Korea (in Canada it takes over a year to process the application).

Also, be warned that your home government rarely receives such applications, so it will be difficult to find anyone who has any knowledge at all about the social security agreement or that you are eligible for lump sum refunds. I had to explain all that to the government officials in Canada and they were very confused. But they did the research and came back eventually with the correct information on how to process the application.

hockeyguy109 · Joined: 22 Dec 2008 Location: Daegu

So is a pension something that is automatically guaranteed to you while working in Korea? If not, what must you do to guarantee it? sorry, I'm kind of new and don't really understand pensions. I don't know if anything was mentioned about it in my school's contract.

hockeyguy109 · Joined: 22 Dec 2008 Location: Daegu

So is a pension something that is automatically guaranteed to you while working in Korea? If not, what must you do to guarantee it? sorry, I'm kind of new and don't really understand pensions. I don't know if anything was mentioned about it in my school's contract.

Big Mac · Joined: 17 Sep 2005

Hockey Guy, pension is mandatory under Korean law. Your employer has to provide it to you. Many employers try to get out of providing it to foreigners. They're hoping you won't know that it's mandatory and they're hoping to save a lot of money.

This is the way it works...

Your school is supposed to deduct 4.5 per cent of your monthly salary from your pay. They give that money to the pension office, and they also match that money. So say you have 90,000 Won deducted off your pay for pension, 180,000 Won in total is paid into the fund by you and your employer.

That money keeps going into that account throughout your time working in Korea. Even if you move to another job, the money you contributed previously will be linked to your Alien Registration Card number (which always stays the same).

When you go to leave Korea permanently you can go to the pension office and apply for a lump sum refund. You have to be from Canada, the United States or Australia in order to apply for the refund. If you are from the UK or maybe Ireland (I'm not totally clear yet on the rules for Ireland, since the agreement was just signed), you can't get a lump sum refund but can apply for Korean pension benefits when you reach the age of 60. My understanding is that New Zealand and South Africa have yet to sign an agreement, though one for New Zealand is apparently in the works.

After making the application, the pension office will wire all the money that both you and your employer paid into the fund to your home account. You can also ask for it to be deposited into your Korean account if you wish.

The OP was asking how to apply in the United States because he is now outside of Korea and wants to claim his lump sum refund. It is much easier to do before you leave Korea, but can also be done in your home country (but with much more difficulty).

If your employer is not paying into pension, you should ask about it. Be prepared for a fight though, because those employers who are not paying into it are intentionally avoiding it and will likely make your life miserable if you ask them about it. Be careful.

esetters21 · Joined: 30 Apr 2006 Location: Seoul

http://www.nps.or.kr/

Did you try this website OP?

In all honesty, you probably should have arranged that before you left Korea.

hockeyguy109 · Joined: 22 Dec 2008 Location: Daegu

Hey Big Mac,
thanks for the info! If I find out the Hagwon is not paying the pension, would this be a worthy piece of information to use against them if they try to fire me in month 11 for no reason just to get around paying the airfare, etc?

Big Mac · Joined: 17 Sep 2005

You could definitely report them to the pension office at any time if they are not paying into the pension fund for you.

Your employer will most likely be fined. He will also most likely be ordered to backpay to the date when you started working there. In that case, you would also have to pay your share (which after 11 months, could add up to over a million won). However, keep in mind that even if they want you to backpay, it would be a wise investment. You will double your money and will get it all back when you leave anyway.