Seven out of 10 preregistrations for South Korea's new "first-ever pension premium subsidy for young adults," which begins payouts next year, were filed by parents rather than by the young people themselves. Applications clustered in Seoul's affluent Gangnam area and in districts known for top schools, while some rural counties recorded no applicants at all, raising concerns about regional gaps.
A total of 2,287 applications had been filed across the country's 230 cities, counties and districts as of Oct. 7, according to data the National Pension Service submitted to the office of Rep. Jeon Jin-sook of the Democratic Party of Korea, a member of the National Assembly's Health and Welfare Committee, released on the 15th.
Of those, only 680, or 29.7%, were filed by the young people themselves. Parents filed 1,607 applications on behalf of their children, accounting for 70.3% of the total. Online submissions through the agency's website and mobile app made up 2,248 applications, or 98.3% of the total.
The program, which takes effect Jan. 1, 2027, is designed to encourage early enrollment in the national pension scheme among young adults whose entry is delayed by schooling or military service, and to help them start building retirement savings. It covers about 450,000 people born in 2009 who turn 18 after the law takes effect. The government will cover the first month's pension premium of 41,000 won in full. Applications are accepted from three months before an applicant turns 18 until the day before their 27th birthday.
Applications Cluster in Gangnam, Top School Districts
A breakdown by region shows a clear concentration in wealthy areas of large cities. Seoul accounted for 358 applications in total. Of those, 92 came from the three Gangnam districts — Gangnam-gu with 44, Songpa-gu with 28 and Seocho-gu with 20 — or 25.7% of Seoul's total. Yangcheon-gu, with 33, and Nowon-gu, with 25, both known for their schools, also ranked near the top.
Gyeonggi Province showed a similar pattern, with applications concentrated in new towns and large residential complexes: 35 in Bundang-gu, Seongnam; 38 in Suji-gu, Yongin; 30 in Yeongtong-gu, Suwon; 31 in Dongtan, Hwaseong; 29 in Dongan-gu, Anyang; and 44 in Namyangju.
Many Rural Counties With Few Young People Report Zero
Reading the pattern solely as a product of gaps in parents' access to information or financial means has limits, however, because the age structure of the population outside the capital region may also be a factor. Indeed, many rural counties outside the Seoul metropolitan area recorded no applications at all.
In North Gyeongsang Province, eight cities and counties — including Yeongcheon as well as Yeongyang, Yeongdeok, Goryeong, Seongju, Bonghwa, Uljin and Ulleung — had no applicants. Zero preregistrations were also recorded in Uiryeong, Namhae, Hadong and Hapcheon in South Gyeongsang Province; Jinan, Muju, Imsil and Sunchang in Jeonbuk State; and Damyang, Gokseong, Gurye, Boseong, Gangjin, Yeongam, Jangseong, Wando and Sinan in South Jeolla Province. Not a single application was filed in Goesan, Danyang and Okcheon in North Chungcheong Province, or in Hongcheon, Pyeongchang, Jeongseon, Hwacheon and Inje in Gangwon State.
The findings have prompted calls to strengthen outreach to groups with limited access to information. Others say the administrative support must be more detailed and multifaceted, taking into account the circumstances of regions at risk of depopulation where the young population has fallen sharply.
The National Pension Service said it would simplify procedures by verifying eligibility through its computer network so applicants do not have to submit documents. It also plans to expand tailored outreach, including visits to schools.