Starting with military personnel discharged in 2027, their entire period of service will be recognized as a contribution period for the National Pension. The childbirth credit for the second child will also be extended from 12 months to 15 months. The Ministry of Health and Welfare announced that an amendment to the National Pension Act containing these provisions, along with an amendment to the Basic Pension Act establishing a domestic residency requirement for the Basic Pension, passed the National Assembly plenary session on October 1.
Until now, military service credits were recognized for a maximum of 12 months, but for those discharged on or after January 1, 2027, the recognition will be expanded to cover the entire actual period of service. This amounts to 18 months for the Army and Marine Corps, 20 months for the Navy, and 21 months for the Air Force and alternative service personnel. The rule that did not recognize service periods of less than six months will also be eliminated.
The effect of the pension increase will also be greater. Based on this year’s average income for subscribers (Value A) of 3,193,511 won and an income replacement rate of 43%, the monthly increase—which was 25,740 won for a 12-month credit—will rise to 38,620 won per month for an 18-month Army service period. For 20 months of service in the Navy, the increase is 42,910 won per month, and for 21 months of service in the Air Force or as a social service worker, it is 45,050 won per month.
For the childbirth credit, the recognition period will be extended to 15 months starting with the second child born in 2027 or later. Accordingly, the pension increase will rise from 34,330 won per month to 42,910 won per month. The Ministry of Health and Welfare expects that this measure will help strengthen retirement income for young people and women by filling pension gaps caused by military service and childbirth, and that increasing benefits for families with multiple children will also help alleviate the low birth rate.
The system for foreign nationals has also been revised. The principle of reciprocity, which previously applied only to mandatory enrollment and lump-sum refunds, will now be extended to retroactive premium payments and dependent pensions for foreign nationals. This means that the same benefits will be granted only to citizens of countries that allow Korean nationals living abroad to make retroactive premium payments or receive dependent pensions. Citizens of countries such as China, the United States, and Canada—which lack a retroactive payment system—and China, which lacks a dependent’s pension system, are likely to be restricted. However, recognizing that it would be inappropriate to blanket-exclude foreigners who have lived, worked, and paid taxes in Korea for a long time, exceptions will be established by presidential decree based on factors such as residency status and length of residence. This provision takes effect immediately upon promulgation.
Due to the amendment to the Basic Pension Act, starting six months after promulgation, only those who have resided in Korea for at least five years since turning 19 will be eligible to receive the basic pension. Prospective recipients and their spouses must declare not only their domestic income and assets but also any overseas income and assets exceeding a certain amount when applying. A new provision stipulating that recipients of the disability pension are deemed to have applied for the basic pension upon reaching age 65 has also been established and will take effect three months after promulgation.
Jeong Eun-kyung, Minister of Health and Welfare, stated, “The expansion of pension credits is a measure to strengthen retirement income security for citizens, and the improvements to the retroactive payment and dependent pension systems for foreign nationals are intended to ensure equity with systems in other countries by applying the principle of reciprocity.” She added, “We will continue our efforts to expand the benefits provided to our citizens and fill any gaps in the system.”
