From BigGo Finance · BigGo Finance · · 2m
South Korea Raises Pension Support Threshold
South Korea's National Pension Service aims to expand low-income subsidy coverage to 1 million won monthly income by 2027.
In brief
South Korea's National Pension Service aims to expand low-income subsidy coverage to 1 million won monthly income by 2027. South Korea's National Pension Service plans to raise the income threshold for premium subsidies from 800,000 to 1 million won monthly by 2027 to address coverage gaps. Originally reported by…
National Pension Service moves to raise income threshold
South Korea's National Pension Service is moving to raise the income threshold for premium subsidies for low-income locally subscribed persons from the current monthly income of less than 800,000 won to less than 1 million…
2027 budget proposal targets change
The goal is to reflect the change in the 2027 government budget proposal as the National Pension Service pushes to have the budget required for the income threshold increase reflected in the 2027 government budget…
Current support covers 50% of premiums
Under the current system, locally subscribed persons with reported National Pension income below 800,000 won per month receive support covering 50% of their premiums for up to 12 months over their lifetime.
Maximum monthly support is 37,950 won
The maximum monthly support amount is 37,950 won (approximately $28) for subscribers with income below 800,000 won.
Threshold increase expands coverage
If the plan is finalized, the support scope would expand to include subscribers with monthly income below 1 million won.
Eligibility relaxed in 2026
Starting January 2026, the 'payment resumption' requirement was abolished, allowing anyone meeting income and asset criteria to apply regardless of past payment history.
Equity concerns with farmers and fishermen
The income threshold remains below the Farmers and Fishermen National Pension Premium Support Program's 1.06 million won monthly standard, creating coverage gaps.
Premium rate hikes increase burden
South Korea's National Pension premium rate rose from 9% to 9.5% this year and is scheduled to increase further to 10% in 2.027, compounding financial strain on low-income earners.
Threshold effect creates burden jump
An income increase of just 1,000 won (approximately $0.74) results in an actual burden increase of 38,050 won (approximately $28).
Budget deliberation hinders implementation
The Special Committee on Budget and Accounts reverted the 2026 amendment to the government's original 800,000 won threshold, delaying the income threshold increase.
The essence
South Korea's National Pension Service plans to raise the income threshold for premium subsidies from 800,000 to 1 million won monthly by 2027 to address coverage gaps.
