Complete Guide to the Korea National Pension (NPS) Lump-sum Refund for Foreigners

Updated 2026-06-20 · General reference information · Country lists change — confirm with NPS (1355).

1. What is the lump-sum refund?

If you work in Korea, both you and your employer normally pay into the National Pension Service (NPS, 국민연금) — together about 9% of your standardized monthly income. When you leave Korea permanently, you may be able to get that money back as a single payment called the lump-sum refund (반환일시금, ban-hwan-il-si-geum). The refund returns your accumulated contributions plus interest. It exists precisely because most foreign workers leave Korea before reaching the 10 years (120 months) needed to draw a regular old-age pension.

2. Who is eligible? Three independent routes

Per NPS, a foreign insured person is entitled to a lump-sum refund if at least one of these is true:

1. Reciprocity (mutualism): your home country pays a corresponding benefit to Korean nationals. Many Asian and African countries fall here (China, Vietnam, Thailand, Indonesia, the Philippines, Nepal, Cambodia, Mongolia, Uzbekistan, Sri Lanka, and more).
2. Social security agreement: Korea has a treaty with your country that allows a lump-sum refund — for example the United States, Canada, Germany, France, Australia, India, and many others.
3. Visa rule: if you hold an E-8, E-9, or H-2 visa, you can receive the refund regardless of nationality, even if your country is otherwise excluded.

Because these are independent, an E-9 worker from a country that has no agreement can still claim a refund through the visa route. This is the single most important rule for migrant workers.

3. Countries that cannot receive a cash refund

Some agreements are "totalization only": instead of a cash refund, your insured periods are combined with your home-country system so they count toward a pension. Under their agreements, nationals of Ireland, Denmark, Spain, Sweden, Finland, and New Zealand generally cannot receive a lump-sum refund, and the United Kingdom agreement covers contributions only. Switzerland, by contrast, is allowed. Even for these countries, the E-8/E-9/H-2 visa route still applies.

4. How the refund amount is estimated

Your monthly contribution is roughly 9% of your standardized monthly income (the employee 4.5% plus the employer 4.5% — both are returned to you). The standardized income is capped to an NPS range (about ₩390,000 to ₩6,170,000 per month), so very high salaries are limited for the calculation. The principal is your contribution multiplied by the number of insured months, and NPS adds interest at roughly the three-year bank deposit rate.

A simple way to read it: refund ≈ income × 9% × months + interest. Our checker clamps income to the NPS range, sums the contributions, and adds an approximate interest amount. The real figure is set by NPS and may differ, especially because of how interest is credited each year.

5. The 10-year (120-month) line

The lump-sum refund is designed for people who do not reach old-age pension entitlement. If you have 120 months (10 years) or more of contributions, you may instead qualify for an old-age pension, which agreement-country nationals can often receive abroad. If you are near this line, ask NPS which option is better for you before claiming a refund.

6. How to apply — step by step

1. Confirm eligibility and gather your passport, Alien Registration Card (ARC), and proof of departure (flight ticket).
2. Prepare a bank account that can receive an international transfer — your Korean account, or an overseas account with SWIFT/IBAN details.
3. Apply at an NPS branch before departure, or by mail/online after you leave. Apply within 5 years of becoming eligible.
4. Submit the claim form, ID, and bank details. NPS reviews your record and confirms the amount.
5. Receive the transfer, and check whether the refund is taxable in your home country.

7. Tax and timing notes

The refund itself is generally paid without Korean income tax withheld in most cases, but rules vary by agreement and by your home country's tax law — some countries tax foreign pension refunds as income. If you have time before leaving, apply early; processing and international transfer can take several weeks. Keep copies of every document. When in doubt, the NPS multilingual helpline 1355 (press 7 for foreign-language service) is the authoritative source.