Married homemakers and young adults without income could gain access to South Korea’s pension system under a proposal from the National Pension Service.
In a report to the National Assembly’s Health and Welfare Committee for its annual audit, the NPS proposed bringing these groups into the system as local subscribers eligible for contribution-exempt status.
Under current rules, people aged 18 to 59 are generally required to enroll in the National Pension. But non-earning spouses and people aged 18 to 26 with no income are excluded from mandatory coverage.
Other subscribers who temporarily lose income can apply for a contribution exemption and retain their subscriber status.
Time spent in contribution-exempt status does not count toward the 120 months of contributions required to qualify for an old-age pension unless the subscriber later pays contributions for that period.
Eligible subscribers can currently make retroactive payments for up to 119 months.
The NPS estimates that 6.67 million people, including non-earning spouses and young adults under 27, are excluded from mandatory coverage.
Bringing them into the system as contribution-exempt subscribers could give them a path to make retroactive payments and build the coverage period needed to qualify for a pension.
Separately, a program set to begin Jan. 1, 2027, will cover the first month’s pension premium — 41,000 won ($31) — for people who turn 18 from that date and have no prior contribution history.
Those who have already paid premiums will instead receive one month of coverage credit.
The NPS also plans to seek a higher income threshold for premium support for low-income local subscribers, raising it from less than 800,000 won a month to less than 1 million won. It will pursue the change for inclusion in the 2027 government budget.
minsikyoon@heraldcorp.com