Introduction
The National Pension is one of the social security systems in South Korea, which is implemented by the government to support the post-retirement lives of its citizens. The National Pension aims to provide economic protection and stable retirement living for individuals in an aging society.
Development and History of National Pension
The National Pension was introduced in South Korea in 1977 and has since undergone continuous development to its current form. Initially, the National Pension was established as a social security system for workers to support industrialization and economic development. However, over time, the role of the National Pension has also been emphasized as a guarantee for post-retirement living.
Objectives and Benefits of National Pension
The objective of the National Pension is to ensure that citizens can have a stable economic protection in their post-retirement years. The National Pension operates based on insurance premiums paid by individuals during their working years.
Economic Protection
The National Pension guarantees post-retirement living by utilizing the insurance premiums paid by individuals during their working years. This provides citizens with economic protection in their post-retirement years, allowing them to maintain a stable standard of living.
Social Stability
As a social security system, the National Pension aims to promote social stability by ensuring that citizens can lead stable lives in their post-retirement years. This contributes to creating a socially stable society and enhancing the welfare of citizens.
Expansion of Coverage
The National Pension has expanded its coverage over time to encompass a wider population. Initially, the National Pension covered only workers in certain industries, but it has gradually expanded to include self-employed individuals, farmers, fishermen, and others. This expansion of coverage has increased the number of people who can benefit from the National Pension system.
Portability
The National Pension provides portability, which means that individuals who have paid insurance premiums for a certain period but move to another country before their retirement can still receive benefits. This allows individuals to maintain their entitlement to National Pension benefits even if they live outside of South Korea after retirement.
Eligibility and Enrollment
Eligibility for the National Pension depends on an individual's age, residency status, and occupation. In general, individuals between the ages of 18 and 59 who are residing in South Korea and engaged in paid employment are eligible for the National Pension. Self-employed individuals, farmers, fishermen, and certain other groups are also eligible to enroll in the National Pension.
Enrollment in the National Pension is mandatory for eligible individuals. The insurance premiums for the National Pension are usually shared by the employer and the employee, with both parties contributing a certain percentage of the employee's monthly wage.
