[E-Daily Reporter Kim Ju-hwan ] Starting next April, individuals must have resided in South Korea for at least five years to be eligible for the basic pension. This measure is intended to ensure institutional equity with South Korean citizens, as the lack of residency requirements had previously led to an increase in the number of dual nationals receiving the benefit.

According to the National Assembly Budget and Policy Office and the Ministry of Health and Welfare on the 5th, the number of dual nationals receiving the basic pension surged by 125.8%, from 3,621 in 2021 to 8,176 last year.

During the same period, their average monthly basic pension payment rose from 272,000 won to 320,000 won, and the total amount paid increased from 11.82 billion won to 31.4 billion won.

Overseas public and private pensions and financial assets held by dual nationals have long been pointed out as a blind spot in the eligibility screening process for the basic pension, as there are limitations to tracking them through domestic administrative networks.

The Budget Analysis Office of the National Assembly Budget and Policy Office pointed out, “While Korean nationals who have faithfully paid taxes and social insurance premiums throughout their lives in Korea have their benefits strictly reduced due to a rigorous income tracking system, dual nationals who have spent their lives abroad are receiving benefits within a blind spot in asset verification, resulting in a regressive breach of equity.”

Although the budget for the Basic Pension for dual nationals accounts for only about 0.1% of the total, there have been repeated calls for systemic improvements to ensure equity with Korean nationals.

Accordingly, the recently amended Basic Pension Act will significantly tighten eligibility requirements starting next April. Previously, since the law did not include a residency requirement, individuals could receive the pension as long as they met the age (65 or older) and income criteria; however, going forward, the basic pension will not be paid to anyone who has not lived in the country for at least five years since turning 19.

The National Assembly Budget and Policy Office emphasized, “Measures must also be devised to enhance the effectiveness of the system’s operation, such as establishing infrastructure to verify overseas assets using tax and financial information exchange systems.”