NPS Lump-sum Refund FAQ for Foreigners
Seven common questions · general reference information · always confirm with NPS (1355).
Frequently asked questions (7)
Can foreigners get a National Pension refund when leaving Korea?
Yes, in many cases. You qualify if your home country grants Korean nationals a matching benefit (reciprocity), if Korea has a social security agreement with your country that allows a lump-sum refund, or if you hold an E-8, E-9, or H-2 visa. These routes are independent, so meeting any one is enough. Confirm your case with NPS at 1355.
Which nationalities cannot receive a lump-sum refund?
Under their social security agreements, nationals of Ireland, Denmark, Spain, Sweden, Finland, and New Zealand generally cannot receive a cash refund — their periods are combined instead. The UK agreement covers contributions only. Switzerland is allowed. Even so, an E-8/E-9/H-2 visa lets you claim a refund regardless of nationality.
How much money will I get back?
The refund returns the contributions paid into your NPS record — roughly 9% of your standardized monthly income, including the employer share — plus interest at about the three-year deposit rate. As a rough guide, refund ≈ income × 9% × months + interest. The exact amount is calculated by NPS and may differ from any estimate.
What is a social security (totalization) agreement?
It is a treaty between Korea and another country that coordinates pension coverage so you are not taxed twice and your periods are recognized. Some agreements provide a lump-sum refund on departure; others only combine (totalize) your insured periods toward a pension in either country, without paying cash.
Do I have to leave Korea permanently to claim it?
Generally yes. The foreigner lump-sum refund is paid when you permanently leave Korea, reach age 60, or in case of death. You can apply at an NPS branch before departure, or by mail or online afterward. Apply within five years of becoming eligible so you do not lose the right.
Will the refund be taxed?
Korea usually pays the refund without withholding income tax in most situations, but this varies by agreement. More importantly, your home country may treat the refund as taxable income. Check your home-country tax rules, and ask NPS (1355) about any Korean withholding for your specific nationality and visa.
I have more than 10 years of contributions — what then?
With 120 months (10 years) or more you may qualify for an old-age pension rather than a lump-sum refund. Nationals of agreement countries can often receive that pension abroad. If you are near this line, ask NPS which option is better before claiming a refund, because a pension may be worth more over time.