Korea Expands Pension Credits for Military Service and Second Children
Legislation passed by the National Assembly will count the full military service period toward National Pension coverage for people discharged from 2027, while increasing pension credits for a second child and tightening Basic Pension eligibility rules.
South Korea will recognize the full period of mandatory military service toward National Pension coverage for people discharged from the military beginning next year, following passage of revised pension legislation by the National Assembly on Thursday.
The changes expand a credit system that adds qualifying months to a person's National Pension contribution record even when no regular contributions were made during military service. Under the existing rule, service members could receive no more than 12 months of additional coverage. The revision removes that ceiling and counts the entire period actually served.
For a typical Army veteran whose service lasts 18 months, the Ministry of Health and Welfare expects the expanded credit to raise the monthly pension benefit by about 38,620 won. The current 12-month credit produces an estimated increase of 25,740 won per month. A separate restriction excluding military service of less than six months will also be removed, allowing all actual service time to qualify.
The measure applies to people discharged in 2027 or later. It is intended to reduce the long-term pension disadvantage faced by people whose entry into civilian employment and the contribution system is delayed by military duty.
Lawmakers also expanded the National Pension credit available when a family has or adopts a second child. The credited period will rise from 12 months to 15 months for second children born or adopted from next year. The credit supplements a parent's pension record to account for time and financial pressure associated with childbirth and caregiving.
The legislation also introduces reciprocity in additional parts of the pension system for foreign nationals. Eligibility to make retroactive contributions or receive dependent-family pension payments will be extended only to nationals of countries that offer corresponding rights to South Koreans living there. Reciprocity had previously applied to mandatory enrollment and lump-sum refunds.
A separate amendment changes the Basic Pension, which supports lower-income older residents. Applicants will generally need to have lived in South Korea for at least five years after turning 19. Applicants and their spouses will also have to disclose income and assets held overseas, not only property and earnings in Korea.
The Basic Pension changes will take effect six months after the amendment is promulgated. Health and Welfare Minister Chung Eun-kyeung said the package strengthens retirement income protection while improving fairness with pension arrangements in other countries.