Korean Job Discussion Forums

[Mr. Kalgukshi]

This is being posted on behalf of a member that has no Internet access at the present time but does not want to delay input regarding his question.

"If you have any knowledge of the U.S. - Korea Social Security Agreement, please pass it along. I am especially interested in comments from individuals that have gone through the process or know of others who have. How easy or difficult is it to get U.S. credit for time working in Korea? Thanks for your help."

[ttompatz]

I am not sure what his actual question is or is relation to (taxation, pension refunds, claiming pension, etc) ...
but the answers will be found on the NPS (national pension service) website:

US specific:
http://english.nps.or.kr/jsppage/english/agreement/agreement_02_03_01.jsp

- history of the agreement
- applicable legislation
- personal scope
- exemptions
- benefits
- agencies of the agreement.

For the most part it pertains to pension and taxation.

.

[Mr. Kalgukshi]

Apparently, his question is solely about reciprocity of Social Security credits between the U.S. and Korea.

[waynehead]

I've never gotten a good answer to this, and it doesn't seem to be explicitly covered in the page linked above, although it's implied.

My understanding is that since I've been working in Korea for about 5 years, and not contributing at all to US SS (but have been contributing to Korean pension), that I therefore have no social security coverage at all?

And should I return to the US to work in say 5 years or so, those accumulated 10 years of Korean pension coverage would not transfer with me back home? Is that right? Then I'd be better off just taking the lump sum?

[Weigookin74]

Not American. But have spoken to Canadian pension office via phone about this. The Canadian government won't pay for the time you were in Korea. Instead, you get that from the Korean government deposited into your account whereever you are living at the time. So, you get a pension from Canada and another one from Korea. I assume it would be the same with America. Someone had said on here that you have to work 10 years to be eligible. But take that info for what it is. You actually need to call the Korean pension office to get an answer.

You can leave it in and get a payout when you're old or cash it out and get nothing in the future and a payout now. A Korean recently told me the amount your projected to get in 20 years (if you ever received those letters) doesn't get adjusted upward for inflation. If your letter tells you, you'll get 600,000 won a month, that's what you'll get get when you retire. With inflation, it'll prob be worth half that in todays dollars (or won). I haven't looked into it for called the pension office. So, you can do what you want with the info. I suggest verifying these things with the pension office.

If you want to apply for the Korean pension when you're old, scan or keep a copy of Alien ID card or number. Probably makes it quicker. But the Canadian government will apply on your behalf to Korea when you apply for pension with them.

[ttompatz]

[Mr. Kalgukshi]

[grant gerstners]

I'm from the USA. In my case, I am having my pension money deposited into my bank account in my home state.

But, next year when I fill out my tax forms, do I count the pension money as ordinary foreign income?

I recall (though I might be wrong), one question that comes up in on-line filing of IRS taxes is whether or not I received an early distribution from a pension or retirement plant. Do I need to report the Korean pension money as an early distribution for tax purposes? Or do I just count it as ordinary income ("wages, tips and other compensation").

Prior to this, when I had read that question during on-line filing, I had always had in mind people taking out early withdrawals from a 401K account--perhaps an IRA (Individual Retirement Account)--which invokes a tax penalty prior to a certain age. But, now I wonder if it applies to people taking their pension money when leaving Korea.

[Mr. Kalgukshi]

The individual that asked the topic question on this thread has since contacted U.S. Social Security and been told that he will qualify for Social Security benefits if it is verified in Korea that he worked as many years as he claimed.

In fact, his phone interview lasted almost one hour.

Bottom line: He was short 6 credits to qualify for U.S. Social Security benefits and his time in Korea should now insure his becoming qualified.

His impression is there is some sort of unit in Korea that certifies or doesn't certify the time allegedly worked in Korea by a Social Security claimant.

Do I know all this for a fact? No.

Do I believe it is highly probable? Yes.

A good starting point is the Social Security unit at the U.S. Embassy in Manila that handles Social Security matters for Korea and other parts of Asia.

[ttompatz]

In Korea it would be handled by the NPS.

Abroad it would be directed through the Korean consulate with jurisdiction over the residence of the person.

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