National Pension Service Foreigners Application Procedure For Lump-sum Refund South Korea

Name of the Organization : National Pension Service
Type of Facility : Foreigners Application Procedure For Lump-sum Refund
Country : Korea

Website : http://www.nps.or.kr/jsppage/english/main.jsp

Related : NPS Pension & Application Status Check South Korea : www.statusin.org/3405.html

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Application Procedure For Foreigners and Lump-sum Refund :

Foreigners and Coverage :
Foreigners residing in Korea are subject to the compulsory coverage of the National Pension Scheme, just like Korean nationals. So, if a foreigner aged between 18 and 59 is working in a workplace covered under the scheme, he/she shall mandatorily be a Workplace-based Insured Person, or an Individually Insured Person.

The interest rate of a time deposit with a maturity of three years for 2013 – 2.7%

Exclusions from the National Pension Coverage :
** Any national whose country’s pension scheme does not mandatorily cover Korean citizens.
** the Republic of South Africa, Nepal, Maldives, Myanmar, Bangladesh, Vietnam, Saudi Arabia, Armenia,Swaziland, Ethiopia, Iran, Egypt, Tonga, Pakistan, Fiji, Cambodia, Singapore, Belarus, East Timor, Georgia
** Foreigners who are not registered under the Immigration Act, to whom the forced deportation order has been issued under the same Act, or who are staying in Korea without being permitted to extend their terms of stay.
** Foreigners whose stay status falls under any of the following; Culture & Art (D-1), Student (D-2), Industrial Training (D-3), General Training (D-4), Religion (D-6), Visiting & Joining Family (F-3) or Others (G-1).
** By the Social Security Agreement.

Aquisition & Loss of Insured Status has to be reported :
Who should submit reports regarding acquisition & loss of insured status :
** For Foreign Workplace-based Insured Persons : Employer of the workplace
** For Foreign Individually Insured Persons : The insured person. However, if the person is unable to report for a particular reason, the spouse or other family members may report on behalf of the insured person.

Due Date for Report :
Foreign Workplace-based Insured Persons : By the 15th of the month following the month in which the relevant facts occurred For example, If an employee starts working in February, the employer has to make a report by March 15.
Foreign Individually Insured Persons : By the 15th of the month following the month which includes the day on which acquisition or loss of the insured status occurred

Foreigners and Payment of the Lump-sum Refund :
** Foreign insured persons are treated equally as Korean national insured persons under the National Pension Scheme. If a foreign insured person becomes eligible to receive an Old-age, Survivor or Disability pension, he/she can be paid any of the pension benefits under the Korean National Pension Act.
** There is no discrimination in terms of benefit amounts and remitting benefits abroad, etc. But there is a certain distinction regarding a Lump-sum Refund. In principle, a Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the scheme.
** But, to foreigners falling under any of the following conditions, a Lump-sum Refund will be paid.
** In cases where a foreigner whose home country grants Koreans benefits corresponding to a Lump-sum Refund under the National Pension Scheme. (Article 126 of the National Pension Act and Article 113 of the Enforcement Decree of the National Pension Act)
** In cases where a foreigner whose home country has concluded a social security agreement with
** Korea regarding the payment of the Lump-sum Refund
** As of November 2013 : 13 countries (Canada, United States, Germany, Hungary, France,
** Australia, Czech Republic, Belgium, Bulgaria, Slovakia, Poland, Romania, Austria)
** Regardless of the nationality, in cases where a foreigner, who has been covered under the National
** Pension Scheme with the status of sojourn of E-8 (Employment for Training),
** E-9 (Non-professional Employment), or H-2 (Visiting Employment) returns to his/her home country <Effective from May 11, 2007>
** If a person had stayed in Korea with 2 or more types of status of sojourn, only the contributions paid during the insured period with those status (E-8, E-9, H-2) are returned.
** If a foreigner applies for a Lump-sum Refund because he/she is going to return to his/her home country, the Lump-sum Refund will be paid as long as the NPS can confirm that the person has left Korea. However, if he/she submits the required materials such as airplane tickets verifying his/her departure within one month, he/she will be able to apply for the refund before leaving Korea.
** The amount of a Lump-sum Refund is the sum of the contributions paid and interest accrued. The interest rate applied to the insured period is the rate from the concerned period, of a time deposit with a maturity of three years, and the interest rate applied to the period after a person lost his/her insured period is the rate from the concerned year, of a time deposit with a maturity of one year.
** The interest rate is the average rate of interest of banks whose operations cover the entire nation and which are established under the Banking Act as of January 1 of the corresponding year.
** The interest rate of a time deposit with a maturity of one year for 2013 : 2.6%

Procedures on How can Foreigners Application of a Lump-sum Refund :

Applying before departing from Korea (for applicants in Korea) :
The Insured Person has to visit one of our regional offices with the following documents :

Required documents :
** An Application for Lump-sum Refund (This form is available at any regional office.)
** Passport of the Insured Person
** Alien Registration Card of the Insured Person
** Proof of the Insured Person’s bank account (for the refund to be transferred to, such as a bank statement, voided check, or bankbook showing the applicant’s name and account number, etc.)
** Flight (or ship) ticket (the date of departure has to be within a month from the date of application)

Applying after departing from Korea (for applicants outside of Korea) :
An application can be made by an agent or mail.

(1) Application by mail from abroad :
The applicant has to fill out the forms and send them with the required documents. Before mailing the application, the applicant needs to have the whole application notarized by a notary public and then apostilled (or attested by the local Korean consulate).

Required documents :
** An application for a Lump-sum Refund
** A copy of the passport of the Insured Person
** Proof of the Insured Person’s bank account (for the refund to be transferred to, such as a bank statement, voided check, or bankbook showing the applicant’s name and account number, etc.)
** In the case of overseas remittance : application for overseas remittance is additionally required.

(2) Application from abroad by agent in Korea :
An agent in Korea may visit one of our regional offices with the required documents and apply for the benefit on behalf of the beneficiary who is staying abroad. In this case, the benefit is transferred to the beneficiary’s bank account not to the agent’s bank account.

Required documents :
** An application for a Lump-sum Refund : the beneficiary has to fill out the “Application by Agent” section of the application form, and have the application notarized by a notary public in the country he/she resides and then apostilled (or attested by the local Korean consulate). Instead of filling out the “Application by Agent” section, the beneficiary may send a “letter of attorney“ which specifies the agent information; full name and address. The letter of attorney has to be notarized by a notary public in the country where the beneficiary resides and then apostilled (or attested by the local Korean consulate). The agent living in Korea who has received the letter of attorney may have to notarize the letter after translating it into Korean so the letter’s contents can be generally identified.
** A copy of the beneficiary’s ID card (issued by the government of the beneficiary’s home country such as a passport, social security card or other forms of identification)
** ID of the agent
** Proof of the beneficiary’s bank account (for the refund to be transferred to, such as a bank statement, voided check, or bankbook showing the beneficiary’s name and account number, etc.)
** In the case of overseas remittance : application for overseas remittance is additionally required.
** If any government administrative agency of a foreign country certifies that the “Application by Agent” section of the application (or the letter of attorney) was written by the beneficiary, and the Embassy of the foreign country in Korea attests it, then the notarization and aposttile (attestation) of the application (letter of attorney) and the proof of the beneficiary’s bank account is not necessary.

(3) Application through MOU :
A foreign national who has returned to his/her home country may submit an application for a Lump-sum Refund, Lump-sum Death Payment or unpaid benefits of the two, at the social insurance institution of his/her home country which has concluded a MOU on benefit applications with Korea. The social insurance institution will send the applications to the NPS. Then the NPS pays the benefit and sends a notice of payment to the applicant directly.

Airport Payment Service of a Lump-sum Refund for Foreigners :
** The NPS is providing Airport Payment Service for foreigners leaving Korea through Incheon Airport.
** Airport Payment is applicable only when the beneficiary’s flight leaves between 11 :00 and 24:00, Mon to Fri. (not available on official holidays) and the ex-employer of the Insured Person makes a disqualification report to the NPS at least one day before the departure date. The Insured Person has to visit one of our branch offices within a month of departure and apply for a Lump-sum Refund. The Insured Person can choose the Airport Payment as the method of Payment.

Procedure of Airport Payment :
** Application at the regional offices (Office hours 09 :00~18:00)
** Visit one of our regional offices and apply for a Lump-sum Refund
** Select Airport Paymentas the method of payment
** Required Documents : passport and alien registration card of the Insured Person, flight ticket with a departure date within a month, and proof of the beneficiary’s bank account (in case there is an additional payment or failure of airport payment)
** Receive a ‘Filing Receipt’
** Receipt at Incheon Airport
** At Incheon Airport Office (Office hours 09 :00~17:00) On the departure date, hand in the filing receipt, passport, alien registration card and flight ticket, and receive the “Direction for Payment of a Lump-Sum Refund“
** At ACE Foreign Exchange Booth of Shinhan Bank (Office hours 09 :00~17:30)
** Hand in the “Direction for Payment of Lump-sum Refund” and passport, and receive the “Receipt of Currency Exchange.”
** At Dojeon Foreign Exchange Booth of Shinhan Bank (in front of the 29th boarding gate, Office hours 09 :00~21:00)
** Hand in “Direction for Payment of a Lump-Sum Refund,” “Receipt of Currency Exchange” and passport and withdraw the exchanged money

Download Forms Here : http://www.nps.or.kr/jsppage/english…/scheme_04.jsp