Korea Pension Refund Guide: Claiming Your NPS Lump Sum When Leaving
How to claim your National Pension Service (NPS) lump-sum refund when leaving Korea. Who qualifies, how to apply, and which countries have exemption treaties.
Key facts
- →Foreigners who paid into Korea's National Pension (NPS) can receive a lump-sum refund when leaving Korea permanently
- →The refund amount is your total contributions plus earned interest
- →Citizens of countries with bilateral pension agreements (e.g., US, UK, Germany) may be exempt from Korean pension contributions entirely
- →You can apply for the refund from abroad, no need to apply before leaving
- →The refund is paid in Korean won to a designated bank account
What is the Korean National Pension refund?
If you worked in Korea and were enrolled in the National Pension System (국민연금), you've been contributing 4.5% of your monthly salary every month, matched by your employer. When you leave Korea without meeting the 10-year contribution minimum for a regular pension, you can get your contributions back as a lump-sum refund (반환일시금).
This is free money that many departing expats miss because they don't know it exists or assume they can't claim it from abroad. The process is straightforward and well worth doing.
Are you exempt from Korean pension contributions?
Before calculating your refund, check if your country has a bilateral social security agreement with Korea. If it does, citizens of that country may be fully or partially exempt from Korean pension contributions, meaning they were never required to contribute in the first place.
Countries with bilateral agreements (pension exemption possible):
| Country | Agreement type |
|---|---|
| United States | Full bilateral agreement |
| Germany | Full bilateral agreement |
| Canada | Full bilateral agreement |
| United Kingdom | Full bilateral agreement |
| Australia | Full bilateral agreement |
| France, Netherlands, Belgium | Full bilateral agreements |
| Japan, China | Partial agreements |
| India, Hungary, Czech Republic | Various agreements |
If your country has an agreement: Exemption is generally NOT automatic. You typically need to obtain a Certificate of Coverage from your home country's social security agency (e.g., SSA for US citizens, HMRC for UK nationals) proving you are covered by your home country's system. Present this to NPS, if accepted, you can claim exemption from Korean pension contributions going forward, and potentially recover past contributions. Contact NPS (1355) to confirm the process for your specific situation.
If your country does NOT have an agreement: You were correctly enrolled, and you're entitled to the standard lump-sum refund of your employee contributions when leaving.
Full list of bilateral agreement countries at www.nps.or.kr → International Social Security Agreements.
How much will you receive?
Refund = total employee contributions + interest
Employee contribution rate: 4.5% of monthly salary (verify current rate at www.nps.or.kr, rates are set by NPS regulation)
Example calculation:
| Monthly salary | Months worked | Your total contributions | Approximate refund |
|---|---|---|---|
| ₩2,500,000 | 12 months | ₩1,350,000 | ~₩1,380,000 |
| ₩3,000,000 | 24 months | ₩3,240,000 | ~₩3,320,000 |
| ₩4,000,000 | 36 months | ₩6,480,000 | ~₩6,700,000 |
Interest is calculated based on the 3-year treasury bond rate at the time of payment. It adds a small amount on top of contributions.
Note: You do NOT receive your employer's matching contributions (also 4.5%). Those remain with NPS.
How to apply for the refund
Option 1: Apply online from Korea (before leaving)
- Visit www.nps.or.kr → English section → "Lump-sum Refund"
- Log in with your ARC number
- Submit the application form and designate a bank account for payment
Option 2: Apply from abroad
- Visit the NPS English website or contact your nearest Korean consulate
- Download the lump-sum refund application form (반환일시금 지급청구서)
- Submit with supporting documents:
- Copy of your passport
- Copy of ARC (or proof of departure from Korea)
- Proof of overseas address
- Bank account details (Korean or overseas)
- Send to NPS via the consulate or directly by post/online
Option 3: Via a Korean consulate
Korean consulates can accept and forward pension refund applications. This is useful if you have limited internet access to Korean government portals.
Documents you need
| Document | Purpose |
|---|---|
| Passport copy | Identity verification |
| ARC copy (if still have it) | Korean identity verification |
| Departure confirmation | Proof you have left Korea |
| Bank account details | For refund payment |
| Application form (반환일시금 지급청구서) | Available on NPS website |
Timeline
| Step | Timing |
|---|---|
| You leave Korea | Day 0 |
| Submit refund application | Any time after departure |
| NPS review period | 2–4 weeks |
| Refund payment | Within 4 weeks of approval |
Tax on the refund
In Korea: The lump-sum pension refund (반환일시금) is subject to Korean withholding tax before payment. The exact rate depends on the refund amount and applicable deductions, NPS applies this automatically. Verify the current withholding rate directly with NPS (☎ 1355) or at www.nps.or.kr/english, as rates and calculation methods change. The withheld tax is deducted from your refund before payment.
In your home country: Whether you owe additional tax on the refund in your home country depends on your home country's tax rules and your tax treaty with Korea. US citizens should check IRS rules for foreign pension refunds. Generally, if Korean tax was withheld, you can claim a foreign tax credit.
Useful contacts
- NPS English helpline: 1355 (English available, select option for foreigners)
- NPS English website: www.nps.or.kr/english
- NPS headquarters: 전라북도 전주시 완산구 홍산로 6 (Jeonju, Jeollabuk-do)
- Seoul NPS office: 서울특별시 강남구 테헤란로 131 (Gangnam-gu, Seoul)
Frequently asked questions
Who can claim the pension refund?
Any foreigner who contributed to the Korean National Pension for at least 1 month and is leaving Korea permanently (or does not meet the 10-year contribution requirement for a regular pension) can claim the lump-sum refund. Citizens of countries with bilateral social security agreements (like the US and Germany) may be exempt from contributing in the first place, see below.
How much will I get back?
You receive all the contributions you personally paid (not your employer's share) plus a small amount of interest. The employee contribution rate is 4.5% of your monthly salary. If you earned ₩3,000,000/month for 2 years, your refund would be approximately ₩3,000,000 × 4.5% × 24 months = ₩3,240,000 plus interest.
Can I apply from abroad?
Yes. You can apply online through the NPS website or via a Korean consulate/embassy in your home country. You do not need to be in Korea to claim the refund.
How long does the refund take?
Once your application is submitted and approved, the refund is typically paid within 2–4 weeks to the bank account you designate. It can be a Korean bank account or, with additional documentation, an overseas bank account.
Is my employer's contribution included in the refund?
No. The lump-sum refund only includes the employee's share of contributions (4.5%). Your employer's matching 4.5% remains with NPS. This is the main reason the lump-sum refund is less than your total pension contributions.
Sources
Looking for a verified English-speaking agent?
We're building a directory of foreigner-friendly agents. Be the first to know.
Join the waitlistRelated guides
Tax Guide for Expats in Korea
What expats in Korea need to know about Korean income tax, who files, what rates apply, double taxation treaties, and what to do before leaving Korea.
How to Open a Korean Bank Account as a Foreigner
Step-by-step guide to opening a bank account in Korea as a foreigner. Which banks accept expats, what documents you need, and how to avoid common rejections.