Korea expands military, childbirth pension credits

The National Assembly passed revisions to the National Pension Act and the Basic Pension Act, expanding pension credits for military service and childbirth while applying reciprocity to foreign nationals, the health ministry said Thursday.

Under the revision, the entire period of military service will count toward the national pension from 2027, up from a maximum of 12 months. Service periods shorter than six months, previously excluded, will also be recognized. The change raises the monthly pension by 38,620 won for 18 months of service, versus 25,740 won under the previous 12-month credit.

Childbirth and adoption credits will expand for a second child to 15 months from 12 months for children born or adopted in 2027 or later, lifting the monthly pension increase to 42,910 won from 34,330 won.

The revised National Pension Act also extends reciprocity, previously limited to mandatory enrollment and lump-sum refunds, to additional contribution payments and dependent family pensions for foreign nationals. Only nationals of countries that allow South Koreans abroad to make additional contributions or receive dependent family pensions will be eligible, with exceptions to be set by presidential decree for long-term residents who have worked and paid taxes in Korea.

The Basic Pension Act introduces a five-year domestic residency requirement, with exceptions for historical migration cases. Recipients and their spouses will also be required to report overseas income or assets above a threshold set by presidential decree. People receiving disability pensions will be considered to have applied for the basic pension when they turn 65.

"The credit expansion is a measure to strengthen retirement income security for the people, and the improvement of the additional contribution and dependent family pension systems for foreigners complements equity with other countries' systems by applying reciprocity," Health Minister Jeong Eun-kyung said. "We will continue efforts to broaden the benefits we provide to the people and fill in the gaps."

The military and childbirth credit expansions take effect Jan. 1, 2027. The reciprocity provisions take effect immediately upon promulgation, with the presidential decree following within six months. The residency requirement and overseas asset reporting obligation take effect six months after promulgation, and the disability pension provision after three months.