South Korea to fund first pension contribution for youth born in 2009

The South Korean government launched a program on October 1 to fully cover the 41,000 won first-month pension contribution for those born in 2009. Following a National Assembly amendment, military service credits for those serving after 2027 will also expand to cover the full duration of service.

The government will fully fund the first month's pension contribution for youth born in 2009 to assist with their initial enrollment in the pension system. Alongside this, an amendment to the National Pension Act containing measures to expand military service and childbirth credits has passed the National Assembly of the Republic of Korea, which is expected to help increase pension payouts for the youth population.

According to news reported by National Pension TV, the "Youth First Pension Contribution Support Program," which took effect on October 1, is a system where the state fully covers the first month's pension contribution of 41,000 won when those born in 2009 reach the age of 18. This program is designed to help young people establish a pension enrollment history before entering society, providing a foundation to supplement periods of payment exemption or increase future pension amounts after they secure employment.

Three-minute smartphone application sees 98.7% pre-registration participation rate

Since its start on October 1, the support project has drawn high interest, reaching a pre-registration participation rate of 98.7% as of October 6, according to the video. The application process is highly convenient; individuals can apply online via smartphone in less than three minutes during the window starting three months before their 18th birthday and ending before their 27th birthday. Applications can be made from home or while mobile without a separate visit, and proxy applications by parents are also supported.

The support is evaluated as being highly effective because it allows youth without income to secure future pension eligibility and amounts without imposing additional premium burdens. By receiving support for the first month's premium, those born in 2009 can secure a National Pension enrollment history, which can be used to supplement periods of payment exemption—such as during studies or job preparation—when they eventually generate income. The video emphasized that proxy applications by parents are also very easy to complete.

Military service credits to cover full duration after 2027; childbirth credits also expanded

Credit systems intended to reward the national service of young people are also being significantly strengthened. The amendment to the National Pension Act, which passed the plenary session of the National Assembly of the Republic of Korea on October 1, centrally includes the expansion of military service and childbirth credits. This revision is a measure to more reliably guarantee the valuable time young people spend for the nation, society, and their families.

Regarding military service credits, while previously a maximum of 12 months of service was recognized as an enrollment period, under the amendment, those completing military service after 2027 will have their entire actual service period recognized. Consequently, the effect on increasing monthly pension payouts will grow. While the monthly pension amount previously increased by 25,401 won with the 12-month recognition, it is expected to increase by up to 38,621 won per month based on an 18-month service period.

Childbirth credits have also been improved. Previously, 12 months of enrollment were recognized for the first child, and an additional 12 months were recognized upon the birth of a second child. Under the revised law, the credit for the second child will be expanded to 15 months. In this case, the monthly pension increase for the second child will rise from the previous 34,331 won to 42,910 won.

Improving equity in pension payments for foreigners through reciprocity principle

The legislative revision also includes measures to improve the equity of pension payments for foreigners. The "principle of reciprocity" will be applied to retroactive applications and the payment of pensions to dependents. This measure, intended to strengthen the fairness of the system, provides pension benefits only to citizens of countries where South Korean citizens can receive an equivalent level of benefits when staying in those respective countries.

The National Pension Service plans to continue various practical support efforts to ensure the National Pension serves as a stable support system as young people prepare for the future. The video conveyed the National Pension Service's determination to fulfill its role as a reliable support system for youth moving toward tomorrow.

Source: original video (YouTube)