From BigGo Finance · BigGo Finance · · 2m
South Korea Opens Pension for Stay-at-Home Spouses
South Korea reopens national pension for stay-at-home spouses after 13 years, launching 'one person, one pension' for 6.67 million.
In brief
South Korea reopens national pension for stay-at-home spouses after 13 years, launching 'one person, one pension' for 6.67 million. South Korea will add 6.67 million stay-at-home spouses and jobless young adults to its pension system with retroactive payments to meet 10-year contribution requirements. Originally…
South Korea Reopens Pension for Stay-at-Home Spouses
South Korea's National Pension Service and Ministry of Health and Welfare are pushing a membership restructuring to bring 6.67 million people into the system as payment-exempt subscribers.
13-Year Gap in Pension System
The move converts the 'one pension per household' framework from 1988 into a 'one pension per person' system after a 2013 attempt failed.
Stay-at-Home Spouses Gain Retroactive Payments
Spouses with no income could keep subscriber status and make retroactive payments of up to 119 months to meet the 10-year minimum contribution period.
Gender Gap in Pensions
Women's average monthly old-age pension is 429,206 won (approximately $320), about half the male level, and 80.3% of voluntary subscribers are women.
Excluded Subscribers Face Barriers
Unmarried people with no income become payment-exempt subscribers who retain regional subscriber status but defer contributions, while married people with no income are excluded from the system.
Most Left System Due to Marriage
91.6% of excluded subscribers aged 27 to 59 had past payment records from previous employment, with 2.16 million paying contributions for more than four years.
Childbirth Credit Shifted to Husbands
97.3% of childbirth credit recipients are husbands, who have longer contribution periods and higher incomes.
Voluntary Subscribers Are Mostly Women
80.3% of voluntary subscribers who pay contributions on their own initiative are women, and women are 2.2 times the number of men among voluntarily continued subscribers.
Retroactive Payment System
Spouses with no income could gain regional subscriber status and be managed as payment-exempt subscribers who pay nothing while they have no income.
Fiscal Stability Challenges
Critics say measures to prevent regressivity, such as how standard monthly income is calculated for retroactive payments and installment payment mechanisms, must be sophisticated.
Financial Support for Vulnerable Groups
The government plans to give 41,000 won (approximately $31) to young people born in 2009 who turn 18 on January 1 next year and raise the income threshold for low-income support.
Next Steps for Pension Reform
The government will first push to include spouses with no income, then review whether to expand eligibility to jobless young adults under 27 and others.
The short version
South Korea will add 6.67 million stay-at-home spouses and jobless young adults to its pension system with retroactive payments to meet 10-year contribution requirements.
