[Edaily Reporter Kim Sang-yoon ] On the 3rd, President Lee Jae-myung directed officials to revise the current system, which allows foreign nationals to receive the basic pension immediately after acquiring South Korean citizenship as long as they meet the age, income, and asset criteria. He ordered that a minimum period of domestic residence be added to the eligibility requirements for the basic pension and that a comprehensive review be conducted to determine whether similar loopholes exist in other social security systems and government-subsidized programs.

In his opening remarks at the meeting of senior secretaries and aides presided over by President Lee at the Blue House that day, he stated, “Social security systems, which are operated with funds pooled by the people, must be designed with precision and fairness to ensure that no one gains an unfair advantage and that no citizen suffers unreasonable losses.”
Under the current Basic Pension system, benefits are paid to citizens aged 65 or older whose income and assets fall below certain thresholds. The length of residence in Korea following the acquisition of Korean citizenship is not specified as a separate eligibility requirement. Consequently, President Lee pointed out that even individuals who lived abroad for a long time and acquired Korean citizenship in their old age can receive the Basic Pension if they meet the criteria for age, income, and assets.
President Lee emphasized, “To give an extreme example, someone who has lived their entire life as a foreigner but later acquires citizenship and resides in the country would immediately be eligible to receive the Basic Pension on the same terms as others,” adding, “While such cases are unlikely to be common, this is not a matter of how many cases there are, but a matter of principle.”
He went on to point out, “The very existence of this loophole cannot help but be perceived as unreasonable discrimination against the vast majority of South Korean citizens who have faithfully fulfilled their tax obligations as citizens.”
President Lee directed officials to review a plan to add a specific domestic residency period as a requirement for receiving the basic pension. He explained that many countries that fund the basic pension through taxes require residents to live in the country for a certain period to be eligible, and that a bill with similar provisions has been submitted to the National Assembly.
President Lee stated, “We must thoroughly review international examples and domestic research findings to consider institutional improvements, such as establishing a minimum required period of residence in the country.”
Recently, controversy arose when foreigners joined the National Pension System for a short period and then paid past premiums in a lump sum to meet the enrollment period requirements and receive benefits. While the National Pension System is a social insurance program funded by premiums paid by subscribers, the Basic Pension is an old-age income support system funded by taxes. Although they are different systems, President Lee directed officials to find ways to plug the “loopholes” in both systems, noting that unreasonable cases of benefit receipt could arise in a system operated at the public’s expense.
President Lee directed officials to promptly address the shortcomings in the National Pension’s retroactive payment system and, at the same time, “conduct a comprehensive and thorough review of all other social security systems and government-subsidized programs to ensure there are no institutional loopholes that run counter to public common sense and the principle of fairness, and to make necessary corrections where needed.”