National Pension Act (English Translated Version As of Jan (1) (1) 2005)

NATIONAL PENSION ACT
National Pension Service

Republic of Korea
CONTENTS
CHAPTER 1 GENERAL PROVISIONS (Article 1 ～ 5) ................................ 1
CHAPTER 2 NATIONAL PENSION INSURED PERSONS

(Article 6 ～ 21) ........................................................................... 4
CHAPTER 3 NATIONAL PENSION SERVICE (Article 22 ～ 44) ................... 12
CHAPTER 4 PENSION BENEFITS (Article 45 ～ 73) ................................ 19
Section 1 General Rules
Section 2 Old-age Pension
Section 3 Disability Pension
Section 4 Survivor Pension
Section 5 Lump-sum Refund, Etc.
Section 6 Restrictions on Benefit Payment
CHAPTER 5 FINANCIAL RESOURCES AND COLLECTION OF

CONTRIBUTIONS, ETC. (Article 74 ～ 81-3) ..................... 38
CHAPTER 6 NATIONAL PENSION FUND (Article 82 ～ 87) .................. 43
CHAPTER 7 CLAIM AND REQUEST FOR REVIEW (Article 88 ～ 92) .......... 49
CHAPTER 8 SUPPLEMENTARY RULES (Article 93 ～ 103) ................. 50
CHAPTER 9 PENAL PROVISIONS (Article 104 ～ 108) ........................ 55
ADDENDA .................................................................................................. 56
NATIONAL PENSION ACT
Promulgated by Law No. 3902 Dec. 31 1986

Amended by Law No. 4110 Mar. 31 1989
Law No. 4541 Mar. 6 1993
Law No. 4909 Jan. 5 1995
Law No. 4971 Aug. 4 1995
Law No. 5453 Dec. 13 1997
Law No. 5454 Dec. 13 1997
Law No. 5623 Dec. 31 1998
Law No. 5982 May. 24 1999
Law No. 6027 Sep. 7 1999
Law No. 6124 Jan. 12 2000
Law No. 6164 Jan. 12 2000
Law No. 6286 Dec. 23 2000
Law No. 7347 Jan. 27 2005
CHAPTER 1 GENERAL PROVISIONS
Article 1 (Objective) The objective of this Act is to provide pension benefits

in contingency of old-age, disability or death of a breadwinner with a view to
contributing to the livelihood stabilization for the promotion of the welfare of the
nation.
Article 2 (General Supervision) The national pension services under this Act
shall be under the supervision of the Minister of Health and Welfare.(Amended by
Law No. 5454, Dec. 13, 1997)
Article 3 (Definitions) (1) The terms of the Act shall be defined as

follows: (Amended by Law No. 4110, Mar. 31, 1989; Law No. 4909, Jan. 5, 1995;
Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
1. "Employee" means a person who offers his/her services in a workplace and
whose livelihood depends upon the wages received in return for services
irrespective of the type of labor or occupation (including directors and officers
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of a corporation), except as otherwise provided by Presidential Decree;
2. "Employer" means a person who owns or runs a business or an enterprise;
3. "Income" means earnings gained by offering service, running business and
operating assets, etc. for a specified period. In this case, the scope of the
incomes depending on the category of the person insured in the national
pension (hereinafter referred to as the “Insured Person”), shall be determined
by the Presidential Decree;
4. "The Average Monthly Income" means the annual average value of the Standard
Monthly Income of all Workplace based Insured Persons and Individually Insured
Persons;
5. "Standard Monthly Income" means the amount determined by Presidential
Decree for each income group on the basis of the Insured Person's monthly
income which is used to determine the amount of contributions and benefits;
6. "Workplace based Insured Person" means an employer or employee who is
enrolled in the National Pension Scheme under the provision of Article 8;
7. "Individually Insured Person" means a person enrolled in the National Pension
Scheme under the provision of Article 10, who is not a Workplace based
Insured Person.
8. "Voluntarily Insured Person" means a person enrolled in the National Pension
Scheme under the provision of Article 10-2, who is neither a workplace based
nor Individually Insured Person;
9. "Voluntarily & Continuously Insured Person" means a person whose Insured
period is less than 20 years but who may continue to participate in the
National Pension Scheme under the provision of Article 13(1);
10. "Contribution" as the main financial resource of the National Pension is defined
as the combination of employer liability and employee contribution in the case
of a Workplace based Insured Person and the amount contributed exclusively
by the Insured Person himself/herself in the case an Individually Insured
Person, Voluntarily Insured Person and Voluntarily & Continuously Insured
Person.
11. "Employer liability" means the amount contributed by an employer;
12. "Employee contribution" means the amount contributed by a Workplace based
Insured Person;
13. "Workplace" means a place of business or office which has employees.
(2) In application of this Act, “Spouse, husband or wife” shall each include a person
who has a de facto marital relationship.
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(3) If a current or former Insured Person at the time when he/she acquires the
right to receive benefits under this Act carries a fetus and such fetus is born alive,
the fetus shall be considered a dependent of the current or former Insured Person.
Article 4 (Valuation of Financial Equilibrium of the National

Pension and Adjustment of Benefits) (1) The standard of benefits and
contributions under this Act shall be adjusted to secure long-term financial balance
of the National Pension.
(2) The Minister of Health and Welfare, as determined by Presidential Decree, shall
calculate the income and expenditure of the National Pension every five years, make
an overall plan concerning National Pension operation including projection of
finances, adjustment of contributions and operation, etc., and shall obtain the
President's approval after having it reviewed by the Council of National Affairs and
report the plan to the National Assembly. This plan shall be made public as
determined by Presidential Decree.
(3) In the event that a significant change in the living standards, wages, prices and
other economic conditions of the people, the benefit amount to be paid under this
Act shall be adjusted in accordance therewith.
[This Article was Wholly Amended by Law No. 5623, Dec. 31, 1998]
Article 5 (National Pension Council) (1) The National Pension Council

shall be established in the Ministry of Health and Welfare in order to deliberate on
the following items concerning the administration of the National Pension program:
1. Matters pertaining to the National Pension and its financial equilibrium;
2. Matters pertaining to National Pension benefits;
3. Matters pertaining to National Pension contributions;
4. Matters pertaining to the National Pension fund;
5. Other matters through which the Minister of Health and Welfare seeks
consultation concerning the operation of the National Pension Scheme.
(2) The National Pension Council shall consist of a Chairman, Vice-chairman,

and members. The Minister of Health and Welfare shall be the Chairman of the
Council, the Vice-chairman shall be elected among members representing public
interests, and members shall be appointed or commissioned by the Minister of
Health and Welfare in accordance with the following criteria:
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1. 4 persons representing employers recommended by employers' associations;
2. 4 persons representing employees recommended by the federation of labor
unions;
3. The following members representing Individually Insured Persons;
(a) 2 persons recommended by farmers and fishermen associations;
(b) 2 persons recommended by associations related to self-employed persons
other than farmers and fishermen associations;
(c) 2 persons recommended by consumers and civilian associations.
4. 5 experts related to the National Pension as members representing public
interests.
(3) The matters necessary for the organization and operation of the National
Pension Council shall be determined by Presidential Decree.
CHAPTER 2 NATIONAL PENSION INSURED PERSONS
Article 6 (Coverage) Citizens of the Republic of Korea aged from 18 to less

than 60 and who reside in the Republic of Korea shall be covered under this Act.
However, government employees, military personnel and private school teachers
covered under the Government Employee Pension Act, Military Personnel Pension
Act and Private School Teachers Pension Act respectively, and other persons as
designated by Presidential Decree shall be excluded from coverage. (Amended by
Law No. 6124, Jan. 12, 2000)
Article 7 (Categories of Insured Persons) Insured Persons shall be

classified into Workplace based Insured Persons, Individually Insured Persons,
Voluntarily Insured Persons and Voluntarily & Continuously Insured Persons.
[This Article was Wholly Amended by Law No. 4909, Jan. 5, 1995]
Article 8 (Workplace based Insured Persons) (1) Employees and

employers aged from 18 to less than 60 of the workplace, based on the definition of
the type of enterprise and the number of employed workers, etc., as determined by
Presidential Decree (hereinafter referred to as the "covered workplace" or "CWP"),
shall be taken as mandatory, Workplace based Insured Persons . However, any
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person falling under any one of the following items shall be excluded.
(Amended by Law No. 5623, Dec. 31, 1998; Law No. 6124, Jan. 12, 2000; Law No.
6286, Dec. 23, 2000)
1. A person entitled to retirement pension, disability pension or lump sum
retirement pension under the Government Employee Pension Act, the Private
School Teachers Pension Act or the Specially Designated Post Office Act, and
those of the Military Personnel Pension Act shall be excluded from coverage
(hereinafter referred to as the "pensioner of retirement pension, etc.").
2. A person protected under the National Basic Living Security Act.
(2) In the case where the employer of a workplace other than a CWP described in
Paragraph (1) submits an application to the National Pension Service pursuant to
the provision of Article 22 under the Ordinance of the Ministry of Health and
Welfare with the consent of over 2/3 of his/her employees who are from 18 to less
than 60 years of age, employees and the employer (excluding pensioners of
retirement pension, etc.) of the workplace (hereinafter referred to as the "voluntarily
covered workplace" or "VCWP") shall be deemed Workplace based Insured Persons.
The same shall apply to the disqualification of Insured status. (Amended by Law
No. 4110, Mar. 31, 1989; Law No. 5454, Dec. 13, 1997; Law No. 5623, Dec. 31,
1998; Law No. 6286, Dec. 23, 2000)
(3) In the case where an employee less than 18 years of age in a covered
workplace desires to participate in the National Pension Scheme, he/she may
become a Workplace based Insured Person with the consent of the employer of the
workplace regardless of Paragraph (1), (2) and Article 6. (Newly inserted by Law
No. 4090, Jan. 5, 1995)
Article 9 (Fictitious Coverage) In the case where the covered workplace

described in Article 8(1) fails to meet the requirements therein, it shall be regarded
as a VCWP under the former part of Article 8(2) (Amended by Law No. 6286, Dec.
23, 2000)
Article 10 (Individually Insured Persons) A person from 18 to less

than 60 years of age shall be deemed an Individually Insured Person, unless he/she
is a Workplace based Insured Person under provision of Article 8. However, persons
that fall under any one of the following items shall be excluded: (Amended by Law
No. 6286, Dec. 23, 2000)
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1. Non-income earner with a legal spouse falling under any one of the following
sub-items;
(a) Person excluded from coverage under the provision of Article 6;
(b) Workplace based or Individually Insured Person, or Voluntarily &
Continuously Insured Person under Article 13(1);
(c) Employee of a designated post office;
(d) Pensioner of old-age pension or retirement pension, etc.;
2. Pensioner of retirement pension, etc.;
3. Person without income, who is 18 or over and under 27 and who is in school
or military service, etc. (excluding those who have ever paid contributions)
4. Person protected under the National Basic Living Security Act.
Article 10-2 (Voluntarily Insured Persons) (1) In the case where a

person aged 18 or over and under 60 does not fit the description in any one of the
following items, and submits an application to the National Pension Service under
Ordinance of the Ministry of Health and Welfare, he/she may become a Voluntarily
Insured Person: (Amended by Law No. 5454, Dec. 13, 1997)
1. Workplace based Insured Persons under the provision of Article 8;
2. Individually Insured Persons under the provision of Article 10.
(2) Voluntarily Insured Person may, at any time, withdraw from the participation in
the scheme by submitting a discontinuation application to the National Pension
Service under Ordinance of the Ministry of Health and Welfare.(Amended by Law
No. 5454, Dec. 13, 1997)
[This Article was Newly Inserted by Law No. 4909, Jan. 5, 1995]
Article 11 (Acquisition of Insured Status) (1) A Workplace based

Insured Person shall acquire an Insured status on the day when any one of the
following items takes place: (Amended by Law No. 4110, Mar. 31, 1989; Law No.
6286, Dec. 23, 2000)
1. When he/she is employed at or become the employer of a workplace under
Article 8(1) or the former part of Article 8(2);
2. When his/her workplace meets the requirements mentioned in Article 8(1);
3. When an application for coverage under the provision of the former part of
Article 8(2) is accepted.
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(2) An Individually Insured Person under the provision of Article 10 shall acquire
an Insured status on the day when any one of the following items takes place:
(Amended by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
1. Loss of the workplace based Insured status;
2. When he/she ceases to be excluded from the National Pension under the
provision of Article 6;
3. When a spouse, as described in the provision of Article 10-1, comes to have
his/her own income;
4. When a person aged 18 or over and under 27 has income.
(3) A Voluntarily Insured Persons under the provision of Article 10-2(1) shall
acquire Insured status on the day when application for coverage is accepted. (Newly
Inserted by Law No. 4909, Jan. 5, 1995)
Article 12 (Discontinuation of Insured Status) (1) A Workplace based

Insured Person shall lose his/her Insured status on the day after the day when any
one of the following items takes place. However, a person falling under item 6 shall
lose his/her Insured status on that very day: (Amended by Law No. 4110, Mar. 31,
1989; Law No. 6286, Dec. 23, 2000)
1. Death;
2. Loss of nationality or emigration from Korea;
3. Termination of employment status;
4. Acceptance of application for the discontinuation of Insured status under the
provision of the latter part of Article 8(2);
5. 60th birthday;
6. Exclusion from the National Pension under the provision of Article 6.
(2) An Individually Insured Person shall lose his/her Insured status on the day after
the day when any one of the following items takes place, except in the case of
item 3 or 4, in which the Insured Person shall lose his/her Insured status on that
very day; (Amended by Law No. 4110, Mar. 31, 1989; Law No. 4909, Jan. 5, 1995;
Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
1. When he/she dies;
2. When he/she losses nationality or emigrates from Korea;
3. When he/she is excluded from the National Pension under the provision of Article
6;
4. When he/she acquires workplace based Insured status;
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5. When he/she is a spouse as described in the provision of Article 10(1) who ceases
to engage in income-earning activity;
6. [Deleted] (Dec. 23, 2000)
7. 60th birthday.
(3) A Voluntarily Insured Person shall lose his/her Insured status on the day after
the day when any one of the following items takes place, except in the case of
item 6 or 7, in which he/she shall lose his/her Insured status on that very day:
(Newly Inserted by Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998; Law
No. 6286, Dec. 23, 2000).
1. Death;
3. Acceptance of application for the discontinuation of Insured status under the
provision of Article 10-2(2);
4. 60th birthday;
5. Continuous failure to pay contributions for a period longer than that determined
by Presidential Decree;
6. Acquisition of a workplace based or individually Insured status;
7. Exclusion from the National Pension under the provision of Article 6.
Article 13 (Voluntarily & Continuously Insured Persons) (1) Despite

of Article 6, a person falling under any one of the following items may be
protected by coverage as a Voluntarily & Continuously Insured Person by
submitting an application to the National Pension Service under Ordinance of the
Ministry of Health and Welfare until 65 years of age. In this case, he/she will
obtain the Insured status on the day the application is filed. (Amended by Law No.
6286, Dec. 23, 2000)
1. A person whose Insured period is less than 20 years and who is 60 years of
age.
2. A person who engaged or engages in the jobs as specified by the
Presidential Decree (hereinafter referred to as "the special occupation
employees") and who is entitled to old-age pension in accordance with
Article 56(2) and (3) and Article 5 of Addenda of Law No. 3902 National
Welfare Pension Act.
(2) Voluntarily & Continuously Insured Persons may at any time withdraw the
continuation of their Insured status by submitting a discontinuation application to
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the National Pension Service under Ordinance of the Ministry of Health and
Welfare. (Amended by Law No. 4110, Mar. 31, 1989; Law No. 5454, Dec. 13, 1997)
(3) Voluntarily & Continuously Insured Persons shall be disqualified on the day
following the day when any one of the following items takes place: (Amended by
Law No. 4110, Mar. 31, 1989; Law No. 4909, Jan. 5, 1995; Law No. 6286, Dec. 23,
2000)
1. Death;
3. Acceptance of application for the withdrawal from the Insured status under
Paragraph (2);
4. [Deleted] (Dec. 23, 2000)
5. Continuous failure to pay contributions for a period longer than that determined
by Presidential Decree.
Article 14 (Confirmation of Insured Status) (1) The National Pension

Service shall be responsible for the confirmation of acquisition or loss of Insured
status for all Insured Persons. (Amended by Law No.4110, Mar. 31, 1989)
(2) The acquisition or loss of Insured status shall be put into effect on the date of
the acquisition or loss of Insured status under the provisions of Article 11 through
13 with the confirmation of the National Pension Service under Paragraph(1).
(Newly Inserted by Law No. 4110 Mar. 31, 1989)
(3) Confirmation under Paragraph(1) shall be made upon the request of an Insured
Person, by a report filed under the provision of Article 19, or at the Corporation's
discretion.
(4) A current or former Insured Person may, under Ordinance of the Ministry of
Health and Welfare, apply at any time for confirmation as to the acquisition and
loss of Insured status or change in the category of the Insured Person. (Amended
by Law No. 5454, Dec. 13, 1997)
Article 15 (Presumption of Death) The Insured Person reported as

missing while travelling by airplane or ship, or for any other reason, shall be
presumed to be deceased in accordance with Presidential Decree.
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Article 16 (National Pension Insurance Card) (1) The National Pension
Service shall issue a National Pension Insurance Card to all Insured Persons.
(2) Essential matters pertaining to issuance of the Pension Insurance Card under
Paragraph (1) shall be provided by Ordinance of the Ministry of Health and
Welfare.(Amended by Law No. 5454, Dec. 13, 1997)
Article 17 (Calculation of Insured Period) (1) The Insured Person's

Insured period (hereinafter referred to as the "Insured period") shall be calculated on
a monthly basis starting from the month in which he/she acquires an Insured
status to the month to which the day preceding the day of the status loss belongs
to. In the case where the Insured Person regains Insured status in the month that
the day before the day of disqualification belongs to, the month in which he/she
regains Insured status shall not be included in calculation. (Amended by Law No.
4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998)
(2) Regarding the calculation of the Insured period, non-contribution period shall not
be included. However, if the employer deducts contributions from the wages of
Workplace based Insured Persons and has not paid the contributions, the period
corresponding to 1/2 of the period during which contributions were not paid shall
be counted in the Insured period. In this case, a period of less than 1 month shall
be counted as 1 month. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623,
Dec. 31, 1998)
(3) When the National Pension Service, under Ordinance of the Ministry of Health
and Welfare, notifies Workplace based Insured Persons of delinquency in payment
of the workplace concerned, regardless of the provision of Paragraph 2, the period
of delinquency, which takes place from the month after the notified delinquent
month, shall not be counted in the calculation. In this case, regardless of the
provision of Article 77(1), Workplace based Insured Persons concerned, under
Presidential Decree, may pay contributions to the National Pension Service. (Newly
Inserted by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
Article 18 (Totalling of the Insured Period) (1) When a person is

re-qualified as an Insured Person after being disqualified, the former and latter part
of the Insured period shall be added together.
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(2) In the case where changes in the category of the Insured Person are made,
each of his/her Insured periods shall be totalled irrespective of the categories he/she
has belonged to.
Article 19 (Reports) (1) The employer of Workplace based Insured Persons

shall report, under the Ordinance of Ministry of Health and Welfare, facts regarding
mandatory workplace, matters pertaining to changes in the nature of the workplace
and suspension and closure of business, items pertaining to qualification &
disqualification and monthly income of Insured Persons, etc. to the National Pension
Service. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5454, Dec. 13, 1997;
Law No. 5623, Dec. 31, 1998)
(2) Individually Insured Persons, Voluntarily Insured Persons and Voluntarily &
Continuously Insured Persons shall be responsible for the submission of a report,
under Ordinance of the Ministry of Health and Welfare, on matters pertaining to
the qualification & disqualification, change in name or address, income, etc. to the
National Pension Service. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5454,
Dec. 13, 1997)
(3) If for some reason an Individually Insured Person, a Voluntarily Insured Person
or a Voluntarily & Continuously Insured Person is unable to submit the report
under the provision of Paragraph(2), the spouse or other members of his/her family
may submit the report on behalf of the Insured Person. (Amended by Law No.
4909, Jan. 5, 1995)
Article 20 (Notice to Reporters, Etc.) (1) Upon receiving the report as

required by Article 19, the National Pension Service shall review the contents
therein, and, if the reported contents are proven untrue, notify the disparity to the
person who reported.
(2) The provision of Article 21(3) shall apply mutatis mutandis to the notice under
Paragraph(1).
Article 21 (Notice to Insured Persons, Etc.) (1) When the National

Pension Service has confirmed the qualification & disqualification of Workplace
based Insured Persons under Article 14, or determined or adjusted the Standard
Monthly Income, it shall be responsible for notifying the employer of the workplace
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of such facts. The National Pension Service shall also be responsible for notifying
Individually Insured Persons, Voluntarily Insured Persons or Voluntarily &
Continuously Insured Persons of the confirmation made to the qualification &
disqualification of these Insured Persons, or of the determination or adjustment of the
Standard Monthly Income. (Amended by Law No. 4909, Jan. 5, 1995)
(2) If the employer receives a notification under Paragraph (1), he/she shall be
responsible for forwarding it to the Insured Person or the disqualified Insured
Person concerned. In the case where the employer is unable to forward it on
account of the address of the receiver being unknown, the employer shall notify the
National Pension Service of such fact.
(3) The National Pension Service shall make a public notice under Ordinance of the
Ministry of Health and Welfare instead of notification if any one of the following
items takes place: (Amended by Law No. 4909, Jan. 5, 1995; Law No.5454, Dec 13,
1997)
1. Closure of the workplace;
2. Unknown address of Individually Insured Persons, Voluntarily Insured Persons
or Voluntarily & Continuously Insured Persons who are to be notified under
Paragraph(1);
3. A notice received from the employer in accordance with the latter part of
Paragraph(2);
4. A determination by Presidential Decree not to notify, due to other unavoidable
circumstances.
CHAPTER 3 NATIONAL PENSION SERVICE
Article 22 (Establishment of the National Pension Service) The

National Pension Service (hereinafter referred to as the "Corporation") shall be
established and delegated the authority relating to the National Pension program by
the Minister of Health and Welfare for the efficient administration of the program
to attain the purpose set forth in Article 1.(Amended by Law No. 5454, Dec. 13,
1997)
Article 23 (Function of the Corporation) The Corporation shall implement
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the following items: (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5454, Dec.
13, 1997; Law No. 5623, Dec. 31, 1998)
1. Management and maintenance of the records for Insured Persons;
2. Collection of contributions;
3. Determination and payment of pension benefits;
4. Welfare promotion programs, including fund loans and establishment and
operation of welfare facilities for Insured Persons, former Insured Persons and
pensioners, under the provision of Article 46;
5. Loans Business to Insured Persons and former Insured Persons, for fund
growth;
6. Other matters entrusted to the Corporation by the Minister of Health and
Welfare concerning the National Pension program.
Article 24 (Legal Status of the Corporation) The Corporation shall be a

legally incorporated entity.
Article 25 (Office) (1) The location of the main office of the Corporation
shall be determined by the articles of incorporation
(2) The Corporation may, if necessary, establish branch offices pursuant to the
articles of incorporation.(Amended by Law No. 5623, Dec. 31, 1998)
Article 26 (Articles of Incorporation) (1) The articles of incorporation of

the Corporation shall contain the following items: (Amended by Law No. 5623,
Dec. 31, 1998)
1. Objective;
2. Name;
3. Provisions pertaining to the main and branch offices;
4. Provisions pertaining to officers and the staff;
5. Provisions pertaining to the Board of Directors;
6. Provisions pertaining to pension programs;
7. Provisions pertaining to budgets and closing accounts;
8. Provisions pertaining to assets and accounts;
9. Provisions pertaining to amendments of the articles of incorporation;
10. Provisions pertaining to the enactment, revision and abolition of rules or
regulations;
11. Provisions pertaining to public notice.
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(2) In the case of any amendment to the articles of incorporation, the Corporation
shall obtain the approval of the Minister of Health and Welfare. (Amended by Law
No. 5454, Dec. 13, 1997)
Article 27 (Registration of Establishment) The Corporation shall come

into existence when its establishment is registered at the place where the main
office of the Corporation is located.
Article 28 (Directors and Auditors) (1) The Corporation shall have a

Chief Director, no more than 3 executive directors, 7 directors and an executive
auditor, and the directors shall be one or more representatives from three groups―
employers, employees, Individually Insured Persons―and an ipso-facto director who
is a 3rd level or higher government official in the National Pension program area in
the Ministry of Health and Welfare. (Amended by Law No. 5623, Dec. 31, 1998)
(2) The Chief Director shall be appointed or dismissed by the President under the
recommendation of the Minister of Health and Welfare, and the executive directors,
directors (ipso facto director excluded) and executive auditor shall be appointed or
dismissed by the Minister of Health and Welfare under the recommendation of the
Chief Director. (Amended by Law No. 5623, Dec. 31, 1998)
(3) Directors shall not be remunerated for their work, but their actual expenses
shall be paid.
Article 28-2 (Executive Director of the Fund) (1) Among the

executive directors, the director in charge of the management and operation of the
National Pension fund (hereafter referred to as the "Executive Director of the
Fund") shall be elected among those who are highly knowledgeable and experienced
in the fields of management, economy, and fund operation.
(2) In order to recommend a candidate for the Executive Director of the Fund, the
Recommendation Committee for the Executive Director of the Fund (hereinafter
referred to as the "Recommendation Committee") which is composed of the Chief
Director as Chairman and the directors as members, shall be established in the
National Pension Service.
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(3) The Recommendation Committee shall announce a call for candidates for
Executive Director of the Fund in the major daily newspapers, and also may locate
and investigate qualified candidates or entrust the investigation to a professional
organization.
(4) The Recommendation Committee shall, according to the candidate criteria for the
Executive Director of the Fund under Ordinance of the Ministry of Health and
Welfare, review the candidates under the provision of Paragraph 3 and confer on
contract conditions with the person to be recommended as a candidate.
(5) The Chief Director shall, according to the results of deliberation and conference
under the provision of Paragraph 4, recommend the candidate and simultaneously
submit the contract draft to the Minister of Health and Welfare.
(6) After the Minister of Health and Welfare approves the recommendation proposal
and contract draft under the provision of Paragraph 5, the Chief Director shall enter
into a contract with the candidate.
(7) Submission of the recommendation proposal and contract draft under the
provision of Paragraph 5 and approval of them under the provision of Paragraph 6
shall be regarded as the appointment recommendation and the appointment of the
Executive Director, respectively, under the provision of Article 28(2).
(8) Matters regarding the qualification of the Executive Director of the Fund,
contract draft negotiation, the recommendation and contract, etc. shall be determined
by Ordinance of the Ministry of Health and Welfare.
[This Article was Newly Inserted by Law No. 5623, Dec. 31, 1998]
Article 29 (Term of Office of Directors and Auditors) The term of

office of directors and auditors shall be 3 years. The term of office of the ipso
facto director shall be that of his/her incumbency, and that of office of the
executive director of the fund shall be the period of his/her contract term.
Article 30 (Duties of Directors and Auditors) (1) The Chief Director

shall represent the Corporation and supervise the operation of the Corporation
- 15 -
(2) The executive directors shall be allotted duties of the Corporation under the
articles of incorporation. In the case where the Chief Director is unable to take
charge of his/her duties, one of the executive directors according to the order of
priority as determined by the articles of incorporation shall act for the Chief
Director.
(3) The auditor shall audit and inspect the accounts, the manner in which the
affairs of the Corporation are administered, and the status of its finances.
Article 30-2 (Appointment of Agent) The Chief Director may appoint,

among the staffs of the Corporation, pursuant to the articles of incorporation, a
representative who has the authority to perform juridical and non-juridical acts.
[This Article was Newly inserted by Law No. 4909, Jan. 5, 1995]
Article 31 (Disqualifications of Directors and Auditors) A person

described in any one of the following items cannot become a director or an auditor
of the Corporation:
1. A person who has been adjudged incompetent or quasi-incompetent;
2. A person has been declared bankrupt and has not obtained a discharge;
3. A person who has been sentenced to imprisonment or heavier penalty and for
whom 3 years has not passed since the execution of the penalty was
terminated or since the suspension of its execution was decided;
4. A person who has been disqualified or suspended from qualification under any
law or decision of the court.
Article 32 (Ipso Facto Retirement or Dismissal of Directors and

Auditors) (1) A director and auditor determined by any one of the items
described in Article 31 shall retire ipso facto from his/her office.
(2) The person with the authority to appoint and dismiss officials may dismiss officials
who fall under any one of the following items: (Amended by Law No. 5623, Dec. 31, 1998)
1. When it is recognized that they cannot perform duties due to physical or mental
impairment;
2. In the case of a violation of ex officio duties;
3. In the case of an intentional or through gross negligence causing losses to the
Corporation;
- 16 -
4. When the executive director of the fund falls under a dismissal cause in the
contract made with the Chief Director under the provision of Paragraph (6) of
Article 28-2.
Article 33 (Restriction of Concurrent Directors and Officers) The

Chief Director, executive directors, auditor and staffs shall not be engaged in a
profit-making business. The executive directors and auditor shall not concurrently
hold another office without the permission of the Minister of Health and Welfare,
and the staffs may not without the permission of the Chief Director. (Amended by
Law No. 5454, Dec. 13, 1997)
Article 34 (Board of Directors) (1) The Board of Directors of the

Corporation shall be established to deliberate and decide important matters of the
Corporation.
(2) The Board of Directors shall be composed of the Chief Director, executive
directors and directors.
(3) The Chief Director shall call meetings of the Board of Directors and shall be the
Chairperson.
(4) The decision of the Board of Directors shall be made by a majority of directors
present at the meeting which is attended by a majority of all directors.
(5) The auditor may attend and state his/her opinion at the meeting of the Board
of Directors.
(6) Matters necessary for the operation of the Board of Directors shall be
Article 35 (Appointment and Dismissal of Staffs) The Chief Director

may appoint and dismiss the staffs of the Corporation under the articles of incorporation.
Article 36 (Status of Directors and Staffs) The directors and staffs of

the Corporation shall be regarded as government employees in the case of
application of Articles 129 through 132 of the Criminal Code.
- 17 -
Article 37 (Supervision over the Corporation) (1) The Corporation shall
obtain approval from the Minister of Health and Welfare for the plan and budget
for operations of the Corporation for each fiscal year under the provision of
Presidential Decree. (Amended by Law No. 5454, Dec. 13, 1997)
(2) The Corporation shall submit reports on its performance and account settlement
to the Minister of Health and Welfare within 2 months after the close of each fiscal
year. (Amended by Law No. 5454, Dec. 13, 1997)
(3) The Minister of Health and Welfare may take measures necessary for
supervision of the Corporation, which includes orders to report the operation of the
Corporation and the inspection of its financial status and, if necessary, orders to
alter the articles of incorporation.(Amended by Law No. 5454, Dec. 13, 1997)
Article 38 (Accounts of the Corporation) (1) The fiscal year of the

Corporation shall follow the government fiscal year.
(2) The Corporation shall determine its fiscal regulations under the approval of the
Minister of Health and Welfare. (Amended by Law No. 5454, Dec. 13, 1997)
Article 39 (Revenues and Expenses of the Corporation) The

revenues of the Corporation shall be composed of money transferred from the
National Pension Fund under Article 82, subsidy from the government, loans and
other income, while its expenses shall be composed of benefits, reserves, refunds,
repayments, the interest of loans under this Act and other expenses incurred from
the operation and work of the Corporation.
Article 40 (Temporary Loans and Conversion) (1) If the fund for

expenses during any fiscal year is deficient, the Corporation may get temporary
loans from the National Pension Fund.
(2) Temporary loans in any fiscal year shall be repaid within that fiscal year.
(3) If expenses relating to various benefits exceed revenues in any fiscal year, the
Corporation may allot conversion from the National Pension Fund for the
Corporation's use through deliberation of the Committee for National Pension Fund
- 18 -
Operations. (Amended by Law No. 5623, Dec. 31, 1998)
Article 41 (Treatment of Surplus) In the case where there is any surplus

balance in the account settlement at the end of a fiscal year, the Corporation shall
make good for any losses and reserve the remainder, if any, for the National
Pension Fund.
Article 42 (Welfare Program and Loan Business) (1) Under the

provision of Presidential Decree, the Corporation may make loans from the fund,
establish welfare facilities and carry out welfare programs to improve the welfare of
Insured Persons, former Insured Persons and pensioners.
(2) Under the provision of Presidential Decree, the Corporation may carry out loan
programs for Insured Persons and former Insured Persons for fund's growth.
(3) Directors and staffs in charge of loan programs under the provision of
Paragraphs (1) or (2) shall compensate for damage to the Corporation caused
intentionally or by gross negligence in the execution of duties.
Article 43 (Entrust of Business) (1) Under the provision of the Articles of

Incorporation, the Corporation may entrust corporations handling social insurance
affairs under other laws and ordinances, post offices, financial institutions and other
establishments with a whole or part of its business to collect contributions, repay
loans and pay benefits and loans. (Amended by Law No. 4909, Jan. 5, 1995; Law
No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
(2) The range of duties to be entrusted and of agencies to be thus authorized by

the Corporation under Paragraph(1) shall be determined by Presidential Decree.
Article 44 (Mutatis Mutandis Application of Civil Code) Provisions

concerning the foundation in the Civil Code shall apply mutatis mutandis to the
Corporation, unless otherwise provided by this Act.
CHAPTER 4 PENSION BENEFITS
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Section 1 General Rules
Article 45 (Types of Benefits) There shall be the following types of

benefits under this Act: (Amended by Law No. 5623, Dec. 31, 1998)
1. Old-age Pension;
2. Disability Pension;
3. Survivor Pension;
4. Lump-sum Refund.
Article 46 (Payment of Benefits) (1) Benefits shall be paid by the

Corporation upon the claim of those who are entitled to benefits (hereinafter
referred to as the "pensioner").
(2) The amount of pension shall be calculated on the basis of a basic pension
amount and an additional amount, which varies according to the cause of pension
payments.
Article 47 (Basic Pension Amount) (1) The basic pension amount for
pensioners shall be the total amount of the following items multiplied by 1800/1000.
If, however, the contribution period of a pensioner is over 20 years, a fringe amount
obtained by multiplying the computed amount under the provision of this Article by
50/1000 shall be added for each additional year (each month less than 1 year shall
be counted as 1/12 year) exceeding 20 years: (Amended by Law No. 5623, Dec. 31,
1998; Law No. 6286, Dec. 23, 2000)
1. The amount calculated by summing the following amounts and dividing by 3.
A. The amount determined by adjusting the average monthly income for the
year 3 years prior to the first year of pension payment to the National
Consumer Price Index (meaning the National Consumer Price Index
announced yearly by the Commissioner of the National Statistical Office
under Article 3 of the Statistical Act. Hereinafter, it has the same
meaning in this Article) for the year prior to the first year of pension
payment;
B. The amount determined by adjusting the average monthly income for the
year 2 years prior to the first year of pension payment to the National
Consumer Price Index for the year prior to the first year of pension
payment;
- 20 -
C. The average monthly income for the year prior to the first year of pension
payment.
2. The amount determined by converting the Insured Person's standard monthly
income for every year during the Insured period into its current value for the
year prior to the first year of pension payment, in accordance with the annual
revaluation rate announced by Minister of Health and Welfare under
Presidential Decree, adding each together, and dividing the number by the total
Insured period.
(2) In the case where the amount of each item of Paragraph (1) is applied to a
pensioner, the amount corresponding to the change rate may be increased or
reduced by the end of every March based on the National Consumer Price Index
for the year prior to the first year of pension payment compared the year before,
but shall pass through review of the National Pension Appeal Committee in advance
under Article 5. (Amended by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec.
23, 2000)
(3) In the case where the amount adjusted by the provision of Paragraph (2) is
applied to a pensioner, the period of application shall be from April of the year of
adjustment to March of the following year. (Amended by Law No. 5623, Dec. 31, 1998)
[This Article was Wholly Amended by Law No. 4909, Jan. 5, 1995]
Article 48 (Additional Pension Amount) (1) The additional pension

amount for a person falling under any one of the following categories, whose
livelihood maintenance either is supported by a pensioner (current or former Insured
Person in the case of Survivor Pension) at the time his/her pension right is
obtained or has been supported by an old-age or disability pensioner since the
pension right was obtained, shall be the amount corresponding to each category. In
this case, the criteria for determining the type of livelihood support for each
supported person shall follow Presidential Decree: (Amended by Law No. 5623, Dec.
31, 1998; Law No. 6286, Dec. 23, 2000)
1. Spouse; 150,000 Won annually.
2. Children under 18 years of age or having 2nd or 1st degree of disability;
100,000 Won annually.
3. Parents aged 60 or older, or having 2nd or 1st degree of disability (Parents of
his/her spouse are included and will be included hereinafter in this Article);
100,000 Won annually.
- 21 -
(2) In the case where the additional pension amount under the provision of
Paragraph (1) is applied to a pensioner, the provision of Paragraphs (2) and (3) of
Article 47 shall be applied mutatis mutandis. (Newly Inserted by Law No. 5623, Dec.
31, 1998)
(3) If a person falling under any of the items in Paragraph (1) is qualified to be a
pensioner, he/she shall be excluded from computation of additional pension amount
under Paragraph(1).
(4) A person falling under any of the items in Paragraph(1) shall not be considered
in computation of an additional pension amount which is benefited from two or
more pensioners.
(5) If a person falling under any of the items in Paragraph (1) corresponds to any
of the following items, he/she shall be excluded from computation of an additional
pension amount: (Amended by Law No. 5623, Dec. 31, 1998)
1. Deceased;
2. When the status of being a dependent supported by a pensioner comes to an end;
3. When the spouse is divorced;
4. When children are adopted by another or the adopted relationship is terminated;
5. When children are 18 years of age, with the exception of a child who has had
a 2nd or 1st degree of disability from the time the pensioner obtained rights;
6. When children or parents who have had a 2nd or 1st degree of disability no
longer fall under that status.
Article 49 (Maximum Pension Amount) The Monthly amount of pension

payment shall not exceed the larger of the following two amounts: the average
amount of the Standard Monthly Income for the last 5 years of the Insured period
computed on the basis of the year prior to the year of the first pension payment as
described in the provision of item (2) of Paragraph (1) of Article 47 and the
average amount of the Standard Monthly Income during the Insured period adjusted
in accordance with the provision of Paragraph (2) of the same Article.
Article 50 (Period and Time of Pension Payment) (1) The pension

payment shall begin with the month following the month of occurrence of the
- 22 -
reason for pension payment (in the case of either repaying the lump-sum refund
with accumulated interest under Article 68(1) or paying postponed contributions
under Article 77-3(1), the reason for pension payment shall occur on the day the
corresponding repayment/payment is made) and end with the month of the
expiration of the right to pension. (Amended by Law No. 6286, Dec. 23, 2000)
(2) Pension shall be paid on a monthly basis at the end of each month, and in the
case where the payment day is Saturday or a holiday, it shall be paid on the day
before. However, payments may be made before the payment day if the benefit
rights expire or the payment is suspended. (Amended by Law No. 5623, Dec. 31,
1998; Law No. 6286, Dec. 23, 2000)
(3) The pension payment shall be suspended from the month following the month
in which payment is justified to be suspended to the month in which such instance
ceases.
Article 51 (Unpaid Benefits) (1) If there is a remaining balance of benefits

payable upon death of the pensioner, unpaid benefits shall be paid upon request of
persons, including the spouse, child, parent, grandchild or grandparent, supported by
the pensioner until his/her death. In this case, matters pertaining to the recognition
criteria regarding those who have been supported by pensioners shall be provided
by Presidential Decree. (Amended by Law No. 5623, Dec. 31, 1998)
(2) The claimant of unpaid benefits under Paragraph(1) shall be qualified in the
order of the spouse, child, parent, grandchild or grandparent of the deceased
pensioner. In the case where 2 or more persons have the same priority, the
payment shall be made in equal shares, and the payment method shall be
Article 52 (Adjustment between Concurrent Benefits) In the case

where a pensioner has the right to claim two or more benefits under this Act, only
one benefit in accordance with his/her choice shall be paid, and the payment of any
other benefits shall be suspended.
Article 53 (Collection of Unjust Benefits, Etc.) (1) The Corporation

shall, under the provision of Presidential Decree, collect unjust benefits from those
who have received payment on false grounds and in other fraudulent manners or
- 23 -
from suspended or expired claims and other improper over-payments. If benefits are
paid on false grounds and in other fraudulent manners, the Corporation shall collect
the amount with interest as determined by Presidential Decree. (Amended by Law
No. 5623, Dec. 31, 1998)
(2) When an Insured Person presumed as dead under Article 15 is confirmed as

alive, the amount of benefits paid on the presumption of his/her death shall be
collected from the recipient by the Corporation.
(3) When the person who has the obligation to return such benefits as mentioned
in Paragraph(1) or (2) also has the right to receive other benefits from the
Corporation or refund resulting from over payment or wrong payment by mistake,
the Corporation may appropriate these payments for the amount to be returned from
him/her in accordance with the provision of Paragraph(1) or (2).
Article 54 (Protection of entitlement to Benefits) The claim to

benefits under this Act shall not be transferred, seized or offered as security.
Article 54-2 (Deduction Payment of the Unpaid Amount) (1)

Benefits (Lump-sum Death Payment are included and suspended benefits are
excluded) under this Act shall be deducted when a current or former Insured
Person, who has a debt relating to loan to be repaid by the provision of Article 42,
acquires benefit rights or dies. Deductions shall not exceed 1/2 of the pensioner's
monthly pension (lump-sum compensation paid as disability pension under the
provision of Paragraph (2) of Article 59 is excluded) under this Act. (Amended by
Law No. 6164, Jan. 12, 2000)
(2) For the purpose of deducting the debt relating to repayment under the provision
of Paragraph (1), the Corporation shall notify the repayment of debt in documents
which set a time limit of more than 20 days. In the case where the debt is not
reimbursed within the time limit, the Corporation shall notify the pensioner in
advance that it shall be deducted from corresponding benefits.
(3) According to Paragraph (1), it shall be regarded that the range of the deducted
amount has been paid to the pensioner.
- 24 -
Article 55 (Exemption from Taxation and Other Public Charges)
The pension benefits paid under this Act shall be exempted from taxation or
entitled to abatement of tax and other public charges in accordance with the Special
Taxation Restriction Act and other laws or by laws of local governments.
(Amended by Law No. 6286, Dec. 23, 2000)
Section 2 Old-age Pension
Article 56 (Pensioner of Old-age Pension) (1) When a current or

former Insured Person with the Insured period of 20 years or longer becomes 60
years of age〔55 in the case of a special occupation employee], he/she shall be paid
the Full Old-age Pension from that time until his/her death. (Amended by Law No.
6286, Dec. 23, 2000)
(2) When a current or former Insured Person with the Insured period ranging from
10 to less than 20 years becomes 60 years of age (55 for the special occupation
employee), he/she shall be paid a certain reduced amount (hereinafter referred to as
"Reduced Old-age Pension") from Old-age Pension under Paragraph(1) from that
time until his/her death. (Amended by Law No. 5623, Dec. 31, 1998)
(3) When an Insured Person with Insured period of 10 years or longer is engaged
in income-earning activities, he/she shall be paid a certain amount of pension
(hereinafter referred to as the "Active Old-age Pension") during the age between 60
and 65 (between 55 and 60 years of age for special occupation employees).
(Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998)
(4) When a current or former Insured Person with the Insured period of 10 years
or longer is 55 or older and not engaged in income-earning activities, despite the
provision of Paragraph (1), he/she may, if wishes, be paid a certain amount of
pension (hereinafter referred to as "Early Old-age Pension") until his/her death,
even though he/she has not reached 60 years of age. (Amended by Law No. 4909,
Jan. 5, 1995; Law No. 5623, Dec. 31, 1998)
(5) The definition of income-earning activities under Paragraph(3) or (4) shall be

determined by Presidential Decree. (Amended by Law No. 4909, Jan. 5, 1995)
Article 57 (Amount of Old-age Pension) (1) The amount of the Full
- 25 -
Old-age Pension under Article 56(1) shall be composed of a basic pension amount
plus an additional pension amount.
(2) The amount of the Reduced Old-age Pension shall be equivalent to 475/1000 of
the basic pension amount, plus an additional pension amount. In the case where the
Insured period is in excess of 10 years, amount equivalent to 50/1000 of the basic
pension amount for every year (every month in a period of less than a year shall
be regarded as 1/12 year)in excess will be added. (Amended by Law No. 5623,
Dec. 31, 1998)
(3) The amount of the Active Old-age Pension depending on the Insured period
shall be the basic pension amount under the provision of Paragraph (1) or 475/1000
of the basic pension amount multiplied by one of the following ratios [amount
equivalent to 50/1000 of the basic pension amount for every year in excess (each
month in a period of less than a year shall be regarded as 1/12 year) will be
added] according to Paragraph (2) in the case of the Insured period exceeding 10
years, by pensioner's age: (Amended by Law No. 5623, Dec. 31, 1998)
1. 500/1000 for age 60 (55 for special occupation employees);
5. 900/1000 for age 64 (59 for special occupation employees).
(4) The amount of the Early Old-age Pension depending on the Insured period shall be
the basic pension amount under the provision of Paragraph (1) or 475/1000 of the basic
pension amount multiplied by one of the following ratios [amount equivalent to 50/1000
of the basic pension amount for every year in excess (every month in a period of less
than a year shall be regarded as 1/12 year) will be added] according to Paragraph (2) in
the case of the Insured period exceeding 10 years, by pensioner's age, plus an additional
pension amount: (Amended by Law No. 5623, Dec. 31, 1998)
1. 750/1000 for the payment from age 55;
5. 950/1000 for the payment from age 59.
Article 57-2 (Pensioner of Divided Pension, Etc.) (1) When a person
- 26 -
married to an Insured Person for 5 years or longer during the Insured period falls
under any one of the following items, the person as a spouse of the Insured Person
shall be paid a certain amount of the pensioner's old age pension until he/she dies.
(hereinafter referred to as "Divided Pension")
1. When reaching 60 years of age after divorcing a spouse who is an old-age
pensioner;
2. When divorced from a spouse who is an Old-age pensioner after reaching 60
years of age;
3. When the former spouse as an Insured Person acquires Old-age Pension rights
after he/she reaches 60 years of age;
4. When reaching 60 years of age after his/her former spouse acquired the status
of Old-age pensioner.
(2) The Divided Pension amount shall be the amount derived by equally
dividing the amount corresponding to the period of marriage among the
pensioner's old-age pension.(Additional Pension excluded).
(3) When a pensioner of Divided Pension is remarried, the payment of the Divided
Pension shall be suspended during the period of remarriage.
(4) The right to claim the Divided Pension shall expire after 3 years from the time
described in any one of the items of Paragraph (1).
Article 57-3 (Relationship between Old-age Pension and Divided

Pension, Etc.) (1) After a person becomes entitled to Divided Pension, the right
to claim Divided Pension by the provision of Paragraph (1) of Article 57-2 shall not
be affected by suspension or expiration of his/her spouse's Old-age Pension.
(2) When the right to claim the Divided Pension expires, the pensioner shall be
paid full Old-age Pension from that time. When the right to claim the Divided
Pension is suspended, the pensioner shall be paid his/her full Old-age Pension
during the period of suspension.
(3) When a person has the right to claim two or more Divided Pensions
simultaneously, he/she shall be paid the total amount of two or more Divided
Pensions despite the provision of Article 52. If a person has the right to claim two
- 27 -
or more Divided Pensions and other pension benefits simultaneously, he/she can
choose between the Divided Pensions and other benefits, and the Divided Pensions or
other pension benefits which he/she did not choose shall be suspended.
(4) The pensioner of Divided Pension shall not be a pensioner of Old-age Pension,
in consideration of payment of Survivor Pension by provision of Article 62(1).
Article 57-4 (Suspension of Early Old-age Pension, Etc.) (1)

According to Articles 56(4) and 57(4), payments of Early Old-age Pension to a
person under 65 years of age who is engaged in work for income under Article
56(5) shall be suspended for the duration of that period.
(2) When a person whose Early Old-age Pension payments are suspended by the
provision of Paragraph (1) quits work thereafter, so that he/she claims Early
Old-age Pension benefits again, the amount of benefits shall be as follows;
1. In the case of an Insured Person in Early Old-age Pension with a total
Insured period (before and after the suspension) of the 20 years or longer; the
amount calculated by adding the additional pension amount to the amount
determined by applying the age payment rate at the time of the first benefit of
Early Old-age Pension to the basic pension amount under Article 57(1);
2. Other cases except the above item 1; the amount calculated by adding the
additional pension amount to the amount determined by applying the age
payment rate at the time of the first benefit of Early Old-age Pension to the
amount excluding the additional pension amount from the reduced Old-age
Pension under Article 57(2).
Section 3 Disability Pension
Article 58 (Disability Pensioners) (1) In the case of an Insured Person

who experiences physical or mental disability traceable to sickness or injury
occurred during the Insured period even after having been completely cured, he/she
shall be paid Disability Pension according to the degree of the disability for the
period during which it persists. (Amended by Law No. 5623, Dec. 31, 1998)
- 28 -
(2) If an Insured Person who becomes physically or mentally disabled is not
completely cured 2 years after the first medical examination, the degree of disability
shall be determined on the day when 2 years have passed. Although an Insured
Person is not entitled to Disability Pension on the day when 2 years have passed,
his/her degree of disability shall be determined on the day the persons claim
Disability Pension if he/she is entitled to Disability Pension because the sickness or
injury has worsened before reaching 60 years of age. (Amended by Law No. 5623,
Dec. 31, 1998)
(3) If a person who lost the right to disability pension under Article 61(1) becomes
covered by the disability pension again before 60 years of age owing to aggravation
of the disease or injury occurred at the time of acquiring the right to the disability
pension, the disability degree shall be determined as of the date of application made
by the person. (This Article was Newly Inserted by Law No. 6286, Dec. 23, 2000)
(4) When persons entitled to the Disability Pension under Paragraph(1) have been
paid the Lump-sum Refund under Article 67, they shall not be paid the Disability
Pension. (Amended by Law No. 5623, Dec. 31, 1998)
(5) The degree of disability shall be classified into 1st, 2nd, 3rd and 4th degrees, and
matters pertaining to the criteria for classification and examination of the degree of disability
shall be provided by Presidential Decree. (Amended by Law No. 5623, Dec. 31, 1998)
Article 59 (Amount of Disability Pension) (1) The amount of Disability

Pension shall be one of the following amounts determined by the degree of
disability: (Amended by Law No. 5623, Dec. 31, 1998)
1. A basic pension amount, plus an additional pension amount for 1st degree
disability;
2. 800/1000 of basic pension amount, plus an additional pension amount for 2nd
degree disability;
3. 600/1000 of basic pension amount, plus an additional pension amount for 3rd
degree disability.
(2) 2250/1000 of basic pension amount shall be paid as lump-sum compensation for
4th degree disability. (Amended by Law No. 5623, Dec. 31, 1998)
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Article 60 (Adjustment between Concurrent Disability Pensions)
In the case where the Disability Pensioner has another disability resulting in a new
Disability Pension, the amount of the Disability Pension shall be adjusted on the
basis of the disability degree determined by examination of both disability degrees.
However, if the disability pension amount adjusted on the basis of the disability
degree determined by examination of both disability degrees is less than one before
such adjustment, the previous amount before adjustment shall be paid. (Amended
by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
Article 61 (Changes in Disability Pension Amount) (1) The

Corporation shall change the amount of Disability Pension according to the
disability degree adjusted by medical examinations conducted by the Corporation.
(2) In the case where the pensioner's disability is aggravated, he/she may submit
an application to the Corporation for change in the amount of Disability Pension.
Article 61-2 (Evaluation of Lump-Sum Compensation) When

applying to the person entitled to lump-sum compensation under Article 59(2) the
adjustment between concurrent benefits under Article 52, adjustment between
concurrent disability pensions under Article 60, change in disability pension amount
under Article 61, and expiration under Article 95(1), it shall be deemed that the
amount calculated by dividing 400/1,000 of basic pension amount by 12 has been
paid for 67 months from the month following the month of occurrence of the
reason for payment.
Section 4 Survivor Pension
Article 62 (Survivor Pensioners) (1) When any of the following persons

dies, survivor pensions shall be paid to survivors. When a person with Insured
period of less than 1 year dies due to sickness or injury, this article shall apply
only when he/she dies because of the sickness or injury occurring during the
Insured period. (Amended by Law No. 5623, Dec. 31, 1998)
- 30 -
1. Person entitled to Old-age Pension;
2. Former Insured Person with the Insured period of 10 years or longer;
3. Current Insured Person;
4. Person entitled to Disability Pension with 2nd or 1st degree of disability.
(2) When a former Insured Person with the Insured period of less than 10 years
dies within 2 years from the first medical examination given during his/her Insured
period or within 1 year after losing Insured status of sickness, injury or sickness
due to injury originating while he/she is an Insured Person, the survivors may be
paid Survivor Pension, except if the deceased or survivors have been paid
Lump-sum Refund under the provision of Article 67. (Amended by Law No. 4110,
Mar. 31, 1989; Law No. 5623, Dec. 31, 1998)
Article 63 (Definition of Survivors, Etc.) (1) Survivors eligible for

Survivor Pension shall be the following persons who were supported by an Insured
Person or a former Insured Person at the time of his/her death. Matters relating to
recognition criteria regarding persons who are supported by an Insured Person or a
former Insured Person shall be determined by Presidential Decree. (Amended by
Law No. 5623, Dec. 31, 1998)
1. Spouse, if husband, must be over 60 years of age or have 2nd degree of
disability or higher;
2. Children, provided that they are under 18 years of age or have 2nd degree of disability
or higher;
3. Parents (including the spouse's parents, the same hereinafter in this section),
provided that they are over 60 years of age or have 2nd degree of disability
or higher;
4. Grandchildren, provided that they are under 18 years of age or have 2nd degree of
disability or higher;
5. Grandparents, (including the spouse's grandparents, the same hereinafter in this
section), provided that they are over 60 years of age or have 2nd degree of
disability or higher.
(2) The Survivor Pension shall be paid only to the person with the highest priority
set forth in Paragraph(1). When a entitlement of the survivor under Paragraph(1)-1
expires or is suspended, the survivor under Paragraph(1)-2 shall be paid the
Survivor Pension.
- 31 -
(3) If there are two or more survivors having the same priority under Paragraph(2),
the amount of the Survivor Pension shall be divided equally, and the method of
payment shall be provided by Presidential Decree.
Article 64 (Amount of Survivor Pension) The amount of the survivor

pension shall be one of the followings depending on the Insured period and the
amount of additional pension, provided that the amount of the survivor pension
payable upon the death of an Old-age Pensioner shall not exceed that of the
Old-age Pension which was paid to the deceased:
1. 400/1000 of the basic pension amount for the Insured period less than 10 years;
2. 500/1000 of the basic pension amount for the Insured period ranging from 10
to less than 20 years;
3. 600/1000 of the basic pension amount for the Insured period of 20 years or
longer.
Article 65 (Expiration of entitlement to Survivor Pension) (1) The

claim to Survivor Pension shall expire when the pensioner falls under any of the
following items: (Amended by Law No. 5623, Dec. 31, 1998)
1. When the pensioner dies;
2. When the pensioner, who is a spouse, remarries;
3. When the pensioner, who is a child or a grandchild, is adopted or the adoptive
relation is terminated;
4. [Deleted] (Dec. 23, 2000)
5. When the pensioner, who is a child or grandchild and does not have 2nd
degree of disability or higher, becomes 18 years of age;
6. When the pensioner who acquired a claim on account of disability no longer
has 2nd degree or higher disability.
(2) The entitlement to the Survivor Pension payable to parents, grandchildren or

grandparents shall expire when the unborn child at the time of the death of an
Insured Person or a former Insured Person is born to obtain the entitlement.
Article 66 (Suspension of Survivor Pension Payments to Spouse)

(1) Payment of Survivor Pension to the widow shall be paid for 5 years from the
time she acquired the right to Survivor Pension, and then shall be suspended until
she reaches 50 years of age. However, when the pensioner falls under any of the
following items, the payment of Survivor Pension shall not be suspended.
- 32 -
1. When the pensioner has 2nd degree of disability or higher;
2. When the pensioner supports a child under 18 years of age or with 2nd degree
of disability or higher of an Insured Person or a former Insured Person;
3. A person who is not engaged in employment under provision of Presidential
Decree.
(2) In the case where the address of the spouse entitled to the Survivor Pension is
unknown for more than 1 year, the payment of the Survivor Pension to this spouse
shall be suspended for that period at the request of children who are survivors.
(3) In the case where there are two or more pensioners of the Survivor Pension
other than the spouse, and the address of one or more of them is unknown for
more than 1 year, the payment of the Survivor Pension to pensioners whose
address is unknown shall be suspended for that period at the request of other
pensioners.
(4) When the address of the pensioner of the Survivor Pension whose payment has
been suspended pursuant to Paragraph(2) and (3) becomes identified, the suspension
of pension payments shall then be removed at the request of the said pensioner.
Section 5 Lump-sum Refund, Etc.
Article 67 (Lump-sum Refund) (1) Lump-sum refund may be paid to an

Insured Person or former Insured Person or their survivors upon his/her request in
the event of any one of the following items: (Amended by Law No. 4110, Mar. 31,
1989 :Law No. 5623, Dec. 31, 1998 : Law No. 6027, Sep. 7, 1999 : Law No. 6124,
Jan. 12, 2000)
1. When a person with the Insured period of less than 10 years reaches 60 years
of age;
2. When an Insured Person or a former Insured Person dies. In the case where
an Insured Person with the Insured period of more than 10 years dies, this
case shall be applied only when Survivor Pension has not been paid under the
provision of Article 72-2;
3. When a current or former Insured Person loses his/her nationality or emigrates
from Korea;
4. When a person becomes a government official, military personnel, private
- 33 -
school teacher or an employee of a specially designated post office covered
under the Government Employee Pension Act, the Military Personnel
Pension Act, the Private School Teachers Pension Act or the Specially
Designated Post Office Act, respectively.
(2) The amount of the Lump-sum refund payable pursuant to Paragraph(1) is as

follows. When a person who has not been participating after losing Insured
status before reaching 60 years of age claims Lump-Sum Refund under
Paragraph (1), he/she shall be paid the amount plus interest using the rate
determined under provisions of Presidential Decree: (Amended by Law No. 4110,
Mar. 31, 1989; Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998; Law
No. 6286, Dec. 23, 2000)
1. Workplace based Insured Person : The sum of contribution and liability plus
the sum of the respective interest calculated, as determined by Presidential
Decree;
2. Individually Insured Person, Voluntarily Insured Person, Voluntarily &
Continuously Insured Person and the Insured Person who paid postponed
contributions under the provision of Article 77-3 : Amount of total
contributions or postponed contributions, plus interest with the rate as
(3) The Article 63 shall be applied mutatis mutandis to the scope of eligible
survivors and the priority of request pertaining to any request for Lump-sum
Refund pursuant to Paragraph(1).
Article 68 (Return of Lump-sum Refund and Insured Period) (1)

When a person who was paid the Lump-sum Refund by provision of Article 67
regains Insured status, he/she may return the Lump-sum Refund plus interest as
determined by Presidential Decree to the Corporation.
(2) The Corporation may permit the return of the Lump-sum Refund in installments
by the provision of Presidential Decree. In this case, the installments shall include
interest with the rate as determined by Presidential Decree.
(3) When a person returns the Lump-sum Refund by the provision of Paragraphs
(1) and (2), the period corresponding to the returned Lump-sum Refund shall be
counted in the Insured period.
- 34 -
(4) Matters necessary for the return of the Lump-sum Refund, such as application,
the method and deadline of return, shall be determined by Presidential Decree.
Article 69 (Expiration of entitlement to Lump-sum Refund) The

claim to the Lump-sum Refund shall expire when falling into one of the following
items:
1. If a person entitled to the refund is re-qualified as an Insured Person;
2. If a person entitled to the refund obtains the right to Old-age pension;
3. If a person entitled to the refund obtains the right to Disability pension;
4. If the survivors of a person entitled to the refund obtains the right to
Survivor Pension.
Article 69-2 (Lump-sum Death Payment) (1) In the case where a

current or former Insured Person dies and has no surviving family members under
the provision of Article 63, the Lump-sum Death Payment shall be paid to
grandchildren, grandparent or direct relatives by blood up to the relationship of
cousin, who were supported by a current or former Insured Person as spouse,
children, parents, grandchildren or grandparents of the deceased. In this case, the
recognition criteria regarding persons supported by a current or former Insured
Person shall be provided by Presidential Decree. (Amended by Law No. 5623, Dec.
31, 1998)
(2) The amount of the Lump-sum Death Payment under Paragraph (1) is equivalent
to the amount of the Lump-sum Refund for a current or former Insured Person, but
shall not exceed four times the larger amount between the last Standard Monthly
Income, converted by annual revaluation rate under Article 47(1)2 to the current
value of the previous year to the year of the Lump-sum Death Payment, of a
deceased Insured Person or former Insured Person, and the average amount of the
Standard Monthly Income during the Insured period. (Amended by Law No. 5623,
Dec. 31, 1998)
(3) The priority of persons eligible for Lump-sum Death Payment is in the order of
spouse, children, parents, grandchildren, grandparents, brothers and sisters, and
distant relatives up to relationship of cousin. In this case, if there are two or more
persons having the same priority, the amount of the Lump-sum Death Payment
- 35 -
shall be divided and paid equally, and the method of payment shall be determined
by Presidential Decree. (Amended by Law No. 5623, Dec. 31, 1998)
Section 6 Restrictions on Benefit Payment
Article 70 (Restrictions on Benefit Payment) (1) If a current or

former Insured Person under this Act causes disease, injury or accident
causing such misfortunes as disease and injury through willful misconduct,
he/she may not be paid Disability Pension based on those disabilities.
(2) If a current or former Insured Person causes disability, death, or accident

causing such misfortune as disability and death, or worsens the degree of his/her
disability or hinders recovery by not following medical instructions intentionally,
through gross negligence, or without justification, he/she may not be paid all or
part of amount of benefits as determined by Presidential Decree. (Amended by Law
No. 5623, Dec. 31, 1998)
Article 71 (Restrictions on Change in Disability Pension Amount)

In the case where the Disability Pensioner worsens the degree of his/her disability
or hinders recovery by not following medical instructions intentionally, through
gross negligence, or without justification, the amount of the Disability Pension shall
not be changed irrespective of the provision of Article 61. (Amended by Law No.
5623, Dec. 31, 1998)
Article 72 (Restrictions of Payment on Survivor Pension) (1) The

survivor who has intentionally caused the death of a current or former Insured
Person under this Act shall not be paid the Survivor Pension.
(2) The survivor who has intentionally caused the death of another survivor
qualified to be a pensioner of the Survivor Pension shall not be paid the Survivor
Pension.
(3) The pensioner of the Survivor Pension who has intentionally caused the death
of another pensioner in the same pension shall not be paid the Survivor Pension.
- 36 -
Article 72-2 (Restrictions on Benefit Payment due to Default in
Payment) When a person claims the Survivor Pension or Disability Pension,
benefits may not be paid for any of the following items.
1. When the person never made contributions payments;
2. When the period in which contributions have been paid (in this case the period paid
under the provision of Article 17(3) is included in the paid period. The same
provision will be applied in the following Articles) is less than 2/3 of the period
derived by adding the paid period to the period not paid (in this case, the period not
over 1 month from the deadline of contributions payment by the provision of Article
76(1), and the period not paid by the provision of Article 77-2 (1) are excluded. The
same provision will be applied in the following Articles). When the period not paid is
less than 6 months, this provision shall not be applied.
Article 73 (Suspension of Benefit Payment) (1) If a pensioner falls

under any of the following items, partial or whole benefit payment may be
suspended: (Amended by Law No. 5623, Dec. 31, 1998)
1. When a pensioner fails to present documents or other materials requested by
the Corporation pursuant to Article 101(1) without justification;
2. When a pensioner of Disability Pension or Survivor Pension refuses medical
examination or confirmation as to the result of the medical examination
requested by the Corporation pursuant to Article 99 without justification;
3. When a pensioner of Disability Pension hinders his/her recovery by not
following medical instructions intentionally, through gross negligence, or
without justification;
4. When a pensioner fails to submit reports pursuant to Article 100(1) without
justification.
(2) (Deleted) <By Law No. 5453, Dec. 13, 1997>
(3) In the case where the Corporation intends to suspend benefit payment, it may
temporarily suspend the payment of benefits before the suspension of payment as
determined by Presidential Decree. (Newly Inserted by Law No. 5623, Dec. 31,1998)
- 37 -
CHAPTER 5 FINANCIAL RESOURCES AND COLLECTION
OF CONTRIBUTIONS, ETC.
Article 74 (National Subsidy) The National Treasury shall provide all or

part of the costs necessary for the administration and operation of the National
Pension program on an annual basis.
Article 75 (Collection of Contributions) (1) The Corporation shall collect

contributions from Insured Persons and employers for each month during their
Insured period to meet the expenses of the National Pension program. (Amended by
Law No. 4909, Jan. 5, 1995)
(2) Of the contributions for Workplace based Insured Persons, the contribution shall
be paid by the Insured Person and the liability by the employer, and the amount of
each source shall be an amount equal to 45/1000 of the Standard Monthly Income,
respectively. (Amended by Law No. 5623, Dec. 31, 1998)
(3) The Individually Insured Person, Voluntarily Insured Person or Voluntarily &
Continuously Insured Person shall pay contributions amounting to 90/1000 of the
Standard Monthly Income. (Amended by Law No. 4909, Jan. 5, 1995)
(4) (Deleted) <Dec. 31, 1998>
(5) (Deleted) <Dec. 31, 1998>
(6) (Deleted) <Dec. 31, 1998>
Article 76 (Deadline of Contributions Payment) (1) Contributions shall

be paid by the person responsible for payments no later than the 10th day of the
month following the month in which the contributions are assessed. Persons who
are engaged in agriculture, forestry, stock farming or fishery by the provision of
Presidential Decree(here in after referred to as “Farmers & Fishermen”), may pay their
contributions by the 10th day of the next month of the end of every quarter
according to the Insured Person's application. (Amended by Law No. 4909, Jan. 5,
- 38 -
1995; Law No. 5623, Dec. 31, 1998)
(2) Contributions paid 1 month in advance before the deadline shall be regarded as being
paid on the next day of the contribution payment deadline of the previous month.
(3) In the case where the person responsible for payments pays contributions in
advance before the month they are due, the period and the amount to be reduced,
etc. shall be determined by Presidential Decree. (Newly Inserted by Law No. 4909,
Jan. 5, 1995)
(4) In the case where the person responsible for payments pays contributions by
automatic account transfer, the Corporation shall provide preferential treatment of
the reduction of contributions payment or other financial benefits by the provision
of Presidential Decree. (Newly Inserted by Law No. 5623, Dec. 31, 1998)
(5) Despite the provision of Paragraph (1), in the case of a delay of notification or
others falling under Ordinance of the Ministry of Health and Welfare, the
Corporation may extend the deadline of Paragraph (1) within the maximum duration
of 1 month. (Newly Inserted by Law No. 6286, Dec. 23, 2000)
(6) A person who intends to extend the payment deadline under Paragraph (5) shall
apply for an extension of payment deadline to the Corporation according to the
procedure specified by Ordinance of the Ministry of Health and Welfare. (Newly
Inserted by Law No. 6286, Dec. 23, 2000)
Article 77 (Payment by Deduction of Contributions at Source) (1)

The employer shall deduct payable contributions of Workplace based Insured
Persons from their monthly wages and shall pay them to the Corporation.
(2) When contribution is deducted from monthly wages under Paragraph(1), the
employer shall prepare the statement of deduction and present it to Workplace
based Insured Persons. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623,
Dec. 31, 1998)
Article 77-2 (Exceptions of Contributions Payment) (1) In the case
- 39 -
where a workplace based or Individually Insured Person is unable to pay
contributions for such reasons as in the following items, the person responsible for
payments is not responsible for paying contributions for the exemption period by
the provision of Presidential Decree: (Amended by Law No. 5623, Dec. 31, 1998; Law
No. 6286, Dec. 23, 2000)
1. Termination of business, loss of employment, or suspension of business;
2. Military service under Article 3 of the Military Service Law;
3. Attending school under Article 2 of the Elementary and Middle Education Law
or Article 2 of the Higher Education Law;
4. Imprisonment;
5. When the Insured Person is in confinement probation or treatment institutions
under the Social Confinement Law;
6. When the Insured Person is missing;
7. When the income of the Insured Person has been reduced or he/she is not
engaged in work for income, by the provision of Presidential Decree.
(2) The period in which the contributions have not been paid under Paragraph(1)
shall not be computed in the Insured period.
Article 77-3 (Postponement of Contributions Payment) (1) Insured

Persons pertaining to the following items shall have all or part of the contribution
payments postponed for the prescribed period: (hereinafter referred to as "postponed
contributions payments") (Amended by Law No. 6124, Jan. 12, 2000)
1. An Insured Person who did not make contributions payments by the provision
of Article 77-2 (1) : This case will be applied only to the period in which
he/she did not make contributions payments;
2. An Insured Person who regains Insured status after finishing his military
service under Article 3 of the Military Service Law : This case will be applied
only to the period in which the person has served. (The period of service
recognized by the Government employees Pension Act, Private School Teachers
Pension Act, Specially Designated Post Office Act and Military Personnel
Pension Act, and period served in the military before January 1, 1988 shall be
excluded from this case)
(2) The amount of postponed contributions payments under Paragraph (1) shall be
the contribution of the month in which the Insured Person applies, multiplied by the
- 40 -
number of months postponed.
(3) The Corporation may permit the postponed contributions payments to be paid in
installments according to Presidential Decree. In this case, the amount shall include
interest with the rate as determined by Presidential Decree.
(4) In the case where an Insured Person has paid the postponed contributions payments
by Paragraphs (1) and (2), the period corresponding to the payments shall be
included in his/her total Insured period.
(5) Matters relating to the postponed contributions payments, such as application,

method and deadline of those payments, shall be prescribed by Presidential Decree.
Article 78 (Advance Collection of Contributions from Workplace

based and Individually Insured Persons) Contributions may be collected
even before the payment deadline (the extended deadline, in the case where the
payment deadline is extended under Article 76(5)) if the person responsible for
payment of contributions of the workplace based or Individually Insured Person is
described in any of the following items: (Amended by Law No. 4909, Jan. 5, 1995;
Law No. 6286, Dec. 23, 2000)
1. Declared incompetent in handling of back taxes because of national taxes, local
taxes or other public charges in arrears;
2. Subject to mandatory execution;
3. Declared bankrupt;
4. Subject to auction;
5. Suffered from termination of his/her Corporation
Article 79 (Claim for Contributions and Disposition for Recovery

of Contributions in Arrears) (1) When the contributions of the workplace
based or Individually Insured Person or other dues payable by the Insured Person
under this Act are not paid within the fixed period (the extended deadline, in the
case where the payment deadline is extended under Article 76(5)), the Corporation
shall set the deadline by the provision of Presidential Decree and demand payment.
(Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998; Law No.
6286, Dec. 23, 2000)
- 41 -
(2) When the Corporation demands payments of contributions or other dues in
default under Paragraph(1), it shall issue a letter of reminder designating a deadline,
taking into consideration the required time, of not less than 10 days.
(3) When those who have received the letter of reminder under Paragraph(1) fail to
pay contributions by the designated date, the Corporation may take actions for the
collection of contributions or other dues in accordance with the procedures for the
recovery of national taxes in arrears subject to permission of the Minister of Health
and Welfare. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5454, Dec. 13,
1997)
(4) In the case where direct disposition of property seized under Paragraph (3) by
the Corporation is deemed inappropriate due to lack in expertise in disposition of
property seized or for some other reasons, the Corporation may ask the Korea
Asset Management Corporation established under the Act on Effective
Management of Non-Performing Assets of Financial Institutions and
Establishment of Korea Assets Management Corporation (hereinafter
referred to as "KAMCO") to dispose the seized property as specified by the
Presidential Decree. In this case, the disposition made by the KAMCO shall
be taken as that made by the Corporation. (Newly Inserted by Law No. 6286,
Dec. 23, 2000)
(5) If the disposition is vicariously conducted by the KAMCO under Paragraph (4),
the Corporation may pay the KAMCO the commission fee as specified by the
Ordinance of the Ministry of Health and Welfare. (Newly Inserted by Law No.
6286, Dec. 23, 2000)
Article 79-2 (Delivery of Documents) Delivery of documents under

Article 79 shall be conducted pursuant to Articles 8 to 12 of the Basic National
Tax Act.
Article 80 (Arrearage Charge) In the event that the person responsible for
contributions fails to pay by the deadline (the extended deadline, in the case where
the payment deadline is extended under Article 76(5)), the Corporation shall collect
overdue charge in arrears proportionate to the period of delinquency as prescribed
by Presidential Decree. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 6286,
- 42 -
Dec. 23, 2000)
Article 81 (Priority of Collection of Contributions) The priority of

contributions and other dues under this Act shall rank equally with that of
contribution payments under the National Health Insurance Act. (Amended by Law
No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23,
2000)
Article 81-2 (Expiration of Collection Right of Contributions, Etc.)

The Corporation's authority to collect contributions and arrearages of Individually
Insured Persons, Voluntarily Insured Persons, and Voluntarily & Continuously
Insured Persons expires in the case of any one of the following : (Amended by
Law No. 6286, Dec. 23, 2000)
1. When a current or former Insured Person dies;
2. When a Voluntarily & Continuously Insured Person loses the Insured status by
the provision of Article 13(3);
3. When an Insured Person is paid Old-age Pension or Lump-sum Refund by the
provision of Article 67(1);
4. When the expiration period has become completed by the provision of
Article 95(1).
Article 81-3 (Appropriation and Refund of Mis-collected Amount) If

there is any mis-collection of contribution, arrearages, or disposition fee for arrears,
the Corporation shall appropriate such mis-collected amounts into the contribution
or other fees as specified in the Act under the Presidential Decree or refund it. In
this case, interest shall be added to the mis-collected amount under the Presidential
Decree.
CHAPTER 6 NATIONAL PENSION FUND
Article 82 (Establishment and Raise of Fund) (1) The Minister of

Health and Welfare shall establish the National Pension Fund (hereinafter referred
- 43 -
to as the "Fund") to serve as a reserve fund to secure the finances necessary for
the National Pension program and to meet the pension benefits under this Act.
(2) The Fund shall be composed of contributions, profits accrued from the Fund,
fixed reserves, and any surplus in the settled account of the Corporation. (Amended
by Law No. 4909, Jan. 5, 1995)
Article 83 (Fund Management and Operation) (1) The Minister of

Health and Welfare shall manage and operate the Fund.(Amended by Law No.
5454, Dec. 13, 1997)
(2) The Minister of Health and Welfare shall manage and operate the Fund in the
following ways according to the decisions of the National Pension Fund Operation
Committee to maximize profits for the purpose of securing the long-term finances
of the National Pension, and may invest for the welfare of Insured Persons and
pensioners as long as it does not endanger the security of National Pension
finances. In the case of item 2, the Minister shall purchase treasury bonds by
mutual agreement with the Minister of Finance and Economy and that of Planning
& Budget: (Amended by Law No. 5623, Dec. 31, 1998; Law No. 5982, May. 24,
1999; Law No. 6286, Dec. 23, 2000; The Date of Enforcement of The following
items is July 1, 2001)
1. Deposit and trust to financial institutions as specified in the Presidential
Decree;
2. Investment in projects for the public sector;
3. Purchase or lending of securities under items of Article 2(1) of the Securities
Exchange Act;
4. Transaction of futures for financial goods indices among those specified in
item 3 of Article 2 of the Futures Trading Act;
5. Welfare business or lending under Article 42;
6. The purchase and disposition of assets to accomplish the original objectives of the
Fund;
7. Other projects to increase the Fund by the provision of Presidential Decree.
(3) Management and operation of the Fund under Paragraph (2) shall be conducted
with due diligence to outperform the market indices rate of return on each asset
class, with the exception of projects under the provision of items 5 and 6. In the
- 44 -
case where the Fund is deposited in the Public Capital Management Fund by the
Public Capital Management Fund Law in item 2 of Paragraph(2), the profit must be
determined at a level of more than the interest of a treasury bond maturing in 5
years time calculated under Presidential Decree by mutual agreement between the
Committee for the Public Capital Management Fund Operation and the one for the
National Pension Fund Operation, by Article 7(2) of the Public Capital Management
Fund Act. (Amended by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23,
2000)
(4) The Minister of Health and Welfare shall balance the account of the Fund to
evaluate the operation results of the Fund and review the status of the Fund in
accordance with Presidential Decree.(Amended by Law No. 5454, Dec. 13, 1997)
(5) The Minister of Health and Welfare may entrust a portion of the work relating
to the management and operation of Fund to the Corporation as determined by
Presidential Decree.(Amended by Law No. 5454, Dec. 13, 1997; Law No. 5623,
Dec. 31, 1998)
Article 84 (Committee for National Pension Fund Operations) (1)

The Committee for National Pension Fund Operations (hereinafter referred to as the
"Operation Committee") shall be established at the Ministry of Health and Welfare
to deliberate and decide on the following matters relating to operation of the fund:
1. Matters relating to the guideline for operation of the fund;
2. Matters relating to conferring for the interest rate of deposit in the case where
the fund is deposited in the public management fund;
3. Matters relating to the plan for operation of the fund;
4. Matters relating to the contents of the operation and uses of the fund under
the provision of Article 87 (3);
5. Other important matters relating to operation of the fund at the request of the
Chairman of the Operation Committee.
(2) The Operation Committee shall be composed of the Minister of Health and
Welfare as Chairman and the Vice-minister of Finance and Economy, Vice-minister
of Agriculture and Forestry, Vice-minister of Commerce, Industry and Energy,
Vice-minister of Labor, and the Chief Director of The National Pension Service as
ipso facto members, and members appointed by the Chairman corresponding to any
of the following items : (Amended by Law No. 5982, May. 24, 1999)
- 45 -
unions;
(c) 2 persons recommended by consumer and civilian associations;
4. 2 experts having rich experience and knowledge in the field of the National
Pension.
(3) The term of office for the committee members shall be 2 years, and members
may be appointed for two consecutive terms. The term of office for the Chairman
and ipso facto members shall be that of their offices.
(4) The Chairman shall call an Operation Committee meeting and preside over the
meeting, shall file and exhibit a written statement of the meeting with date, time,
place, contents of discussion and matters of resolutions and shall notify it.
(5) The Operation Committee meetings shall be held more than 4 times a year,
opened with a majority of members and the resolutions of the meeting shall be
made with the concurrence of a majority of the members present. In this case it
shall be considered that members absent at the meeting did not exercise their
rights of decision. (Amended by Law No. 6286, Dec. 23, 2000)
(6) The Minister of Health and Welfare shall submit the materials necessary for the
meeting in advance at the request of the Operation Committee.
(7) Matters necessary for the organization, operation, etc. of the Operation
Committee shall be prescribed by Presidential Decree.
Article 84-2 (Working & Evaluation Committee for National

Pension Fund Operation) (1) The Working & Evaluation committee for
National Pension fund operation (hereinafter referred to as the "working &
evaluation committee") shall be established in the Operation Committee to deliberate
and evaluate on matters relating to the operation of the fund:
1. Matters relating to the composition of the fund operation assets and accounting
- 46 -
methods of the fund;
2. Matters relating to estimates of the performance of fund operations;
3. Matters relating to the improvement of the management and operation of the
fund;
4. Matters recognized as necessary by the Chairman of the Working &
Evaluation Committee among matters to be presented to the Operations
Committee;
5. Matters requested by the Operation Committee to be deliberated.
(2) The Working & Evaluation Committee shall be composed of the Vice-minister
of Health and Welfare as Chairman, a Vice-chairman elected among the members,
and members appointed by the Chairman who correspond to any of the following
items:
1. Government employees at a position of 2nd or 3rd class in related ministries
appointed by the Chairman and ipso facto members (except for the Chief
Director of The National Pension Service) under the provision of Article 84(2)
among the members of the Operation Committee;
unions;
(c) 2 persons recommended by consumers and civilian associations;
5. 2 experts having rich experience and knowledge in the fields of the National
Pension Scheme and National Pension fund operation.
(3) In the case where each association recommends members under the provision of
Paragraph (2) items 2 through 4, the members shall correspond to one of each item
of the following:
1. A person qualified as a lawyer or certified public accountant;
2. A person who has majored in social welfare, economics or management etc.
and is serving for over 3 years at a position higher than a full-time lecturer
in a university determined by the Higher Education Law;
3. A person with a doctor's degree in social welfare, economics or management
etc. having over 3 years experience in public or research institutions.
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(4) The term of office for committee members shall be 2 years, and members shall
be appointed for two consecutive terms. The term of office for the Chairman and
civil servant members shall be that of their offices.
(5) The related departments in charge of the fund shall submit materials necessary
for the meeting in advance at the request of the Working & Evaluation committee.
(6) The Working & Evaluation Committee shall submit the evaluation results
relating to fund operations to the Operation Committee by the end of June of the
following year.
(7) Matters necessary for the organization, management, etc. of the Working &
Evaluation Committee shall be prescribed by Presidential Decree.
Article 85 (Guideline for National Pension Fund Operations) (1)

The Committee shall annually prepare a guideline for National Pension Fund
Operations (hereinafter referred to as the "guideline") relating to the following items
to maximize the interest of Insured Persons: (Amended by Law No. 5623, Dec. 31, 1998)
1. The ratio of fund assets to be used for public service projects;
2. The priority of fund distribution to public service projects;
3. Business expenses for the welfare of current and former Insured Persons and
pensioners;
4. Loan business expenses for current and former Insured Persons to increase the
fund.
(2) Other matters necessary for the guideline under Paragraph(1) shall be prescribed
Article 86 (Receipts and Disbursements of Fund) Procedures relating to

receipts and disbursement of the Fund shall be prescribed by Presidential Decree.
Article 87 (Plans for Operations of Fund) (1) The Minister of Health

and Welfare shall annually make plans for Fund operation and obtain the approval
of the President after deliberation by the Committee and State Council.
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(2) The government shall report the plans for fund operation to the National
Assembly under the provision of Paragraph (1) by the end of October of the
previous year.
(3) The Minister of Health and Welfare and the Minister of Finance and Economy
shall submit the contents of fund operations and the uses of the deposited fund in
the public management fund, respectively, to the Operation Committee by the end of
June of the next year.
(4) The Chairman of the Operation Committee shall submit the nature of fund
operations and of the uses of the fund to the National Assembly under Paragraph
(3) after deliberation by the Operation Committee and shall notify it as prescribed
CHAPTER 7 CLAIM AND REQUEST FOR REVIEW
Article 88 (Claim) (1) Those who have complaints regarding the

Corporation's decision on Insured status, Standard Monthly Income, contributions
and other charges under this Act, as well as benefits, may file a claim objection
with the Corporation. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623,
Dec. 31, 1998)
(2) The claim pursuant to Paragraph(1) shall be made in writing within 90 days
from the date the Corporation's decision is noticed. If it is proven that there are
justifiable reasons preventing filing of the claim within the said time, the claim may
be filed thereafter. (Amended by Law No. 5623, Dec. 31, 1998)
Article 89 (National Pension Appeal Committee) (1) The National

Pension Appeal Committee (hereinafter referred to as the "Appeal Committee")
under the provision of Article 88 shall be established in the Corporation to screen
matters for claims.
(2) The matters necessary for the formation, operation, deliberation etc. of the
Appeal Committee shall be provided by Presidential Decree.
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Article 90 (Request for Review) Any person who is dissatisfied with the
decision made regarding the claim pursuant to Article 88 may request review to the
National Pension Review Committee within 90 days from the date when he/she is
given notice of such decision.
Article 91 (National Pension Review Committee) (1) The National

Pension Review Committee (hereinafter referred to as the "Review Committee")
under the provision of Article 90 shall be established in the Ministry of Health and
Welfare to review requested matters.
(2) The matters necessary for the formation, operation, review etc. of the Review
Committee shall be provided by Presidential Decree.
Article 92 (Relation to Administrative Appeals) (1) The

Administrative Appeals Act shall apply mutatis mutandis to the procedure for
review and decision of the Review Committee. (Amended by Law No. 5623, Dec.
31, 1998)
(2) The review made by the Review Committee upon request for review pursuant
to Article 90 shall be regarded, when Article 18 of the Administrative Litigation Act
is applied, to be an Administrative Appeal Judgement pursuant to the
Administrative Appeals Act. (Amended by Law No. 5623, Dec. 31, 1998)
CHAPTER 8 SUPPLEMENTARY RULES
Article 93 (Adjustment between Concurrent Benefits) In the case

where a pensioner of Disability Pension or Survivor Pension is eligible to be paid
benefits pursuant to one of each item of the following with the same reason as for
payment of Disability Pension or Survivor Pension by the Act, half of the amount
of the Disability Pension under the provision of Article 59 or of the Survivor
- 50 -
Pension under the provision of Article 64 shall be paid.
1. Disability compensation under the provision of Article 83 of the Labor Standard
Act, Survivor compensation under the provision of Article 85 of the same Act,
or Lump-sum compensation under the provision of Article 87 of the same Act;
2. Disability benefits under the provision of Article 42 of the Industrial Injury
Compensation Insurance Act, or Survivor benefits under the provision of
Article 43 of the same Act;
3. Disability compensation under the provision of Article 88 of the Sailors Act,
Lump-sum compensation under the provision of Article 89 of the same Act, or
Survivor compensation under the provision of Article 90 of the same Act.
Article 93-2 (Adjustment of Job Search Benefits in Employment

Insurance) In the case an old-age pensioner aged over 55 and less than 65 who
is eligible for job search benefits under the provision of Article 31 of the
Employment Insurance Act, the Old-age Pension shall be suspended for the duration
of that period.
Article 94 (Right of Subrogation) (1) In the case where the Disability

Pension or Survivor Pension resulting from the act of a third party has been paid
to the pensioner, the Corporation shall be subrogated into a position of the
pensioner to file a claim against the offending third party for the loss not exceeding
the amount of pensions already paid. (Amended by Law No. 5623, Dec. 31, 1998)
(2) In the case where the pensioner has been paid an indemnity by the act of a
third party who brought about the same claim to the Disability Pension or Survivor
Pension as prescribed in this Act, the Corporation shall, pursuant to Paragraph(1),
deduct a certain amount from his/her Disability Pension or Survivor Pension not
exceeding the amount of the indemnity already paid to him/her. (Amended by Law
No. 5623, Dec. 31, 1998)
Article 95 (Period of Prescription) (1) The right of the Corporation to

collect contributions, redemption money, and other charges under this Act shall be
confined to 3 years and the right of pensioners or Insured Persons to claim benefits
or to receive repayments made by mistake shall expire if it is not exercised within 5
years. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998)
- 51 -
(2) The period of prescription of the right to claim benefits shall not be applicable
to the period during which payment of the total amount of pensions has been
suspended.
(3) The urging under the provision of Article 79(1) or notice letter for payment of
contributions and other charges under this Act and the claim for payment of
benefits or repayments made by mistake, shall stop the prescription. (Amended by
Law No. 4909, Jan. 5, 1995; Law No. 5623, Dec. 31, 1998)
(4) The prescription after interruption under Paragraph(3) shall begin anew from the
time the period for payment according to the sent urging or notice letter lapses.
(5) In the calculation of the period of payments of benefits under the provision of
Paragraph(1) or the claim for repayments made by mistake, the shipping days of
that document shall not be counted in that period. (Newly Inserted by Law No.
5623, Dec. 31, 1998)
Article 96 (Computation of Fractions) In the case where a fraction of

less than 10 Won arises in the computation of benefits, contributions, repayments,
etc. under this Act, the Management of the National Treasury Funds shall be
applied to the computation of such fractions. (Amended by Law No. 4909, Jan. 5, 1995;
Law No. 7347, Jan. 27, 2005)
Article 97 (Original Register for Pension Program) The Corporation

shall keep an original register of current and former Insured Persons and pensioners
in which personal information, acquisition or loss of Insured status, payment of
contributions, payment of benefits and other information as set forth in the
Ordinance of the Ministry of Health and Welfare are recorded. (Amended by Law
No. 4909, Jan. 5, 1995; Law No. 5454, Dec. 13, 1997)
Article 98 (Protection of Employee's Rights and Interests)

Employers shall not withhold promotions or wage increase and lay off employees,
without justification or treat them disadvantageously in order to hinder employees
from being Insured Persons or to avoid increase of their contribution dues.
Article 99 (Medical Examination) The Corporation may, if necessary, ask
- 52 -
that a medical examination be given by a doctor designated by the Corporation, to
pensioners of disability or persons who are considered in computation of an
additional pension amount or may have officials of the Corporation confirm the
degree of their disability. (Amended by Law No. 5623, Dec. 31, 1998)
Article 100 (Reporting, Etc.) (1) Current and former Insured Persons, and
pensioners shall report or notify the Corporation or their employer on matters
relating to Insured status, contributions and acquisition or changes in the
entitlement to benefits as prescribed by Ordinance of the Ministry of Health and
Welfare. (Amended by Law No. 4909, Jan. 5, 1995; Law No. 5454, Dec. 13,
1997)
(2) In the case of the death of a current Insured Person, former Insured Person or
pensioner, the person who has the obligation to report under Article 88 of the
Family Registration Act shall report the death to the Corporation no later than 1
month from the date of said death.
Article 101 (Investigation and Questioning, Etc.) (1) In order to

determine the qualification of the Insured Person, the Standard Monthly Income,
contributions or benefits, or to confirm the acquisition, changes, lapse or suspension
of entitlement to benefits, the Corporation may, if necessary, require employers,
current Insured Persons, former Insured Persons, or pensioners to submit the
necessary documents and other materials, or it may have its officials visit
workplaces and any other places about relevant matters. (Amended by Law No.
4909, Jan. 5, 1995)
(2) When officials of the Corporation visit, investigate or make inquiries under Paragraph(1),
they shall show the papers certifying the authority of such actions to the persons concerned.
Article 101-2 (Request of Materials) (1) The Corporation may ask the
central government, local self-governing bodies, other public bodies, etc. for
materials relating to the National Pension program, and those public bodies which
have been asked to offer materials shall not refuse to give them without particular
reason.
(2) Expenses for use, fees, etc. for materials provided to the Corporation under the
provision of Paragraph (1) shall be exempted.
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Article 101-3 (Maintaining Secrets) Persons who have been employed or

are currently working in the Corporation shall not reveal any secrets which have
been gained in the course of duties.
Article 102 (Application to Foreigners) (1) A foreigner who is employed

at a workplace covered by this Act and a domestic foreign resident, except for a
defined foreigner by Presidential Decree, shall be a mandatory Workplace based
Insured Person or mandatory Individually Insured Person, irrespective of the
provision of Article 6. Provided, That this shall not apply in case any relevant Act of
those foreigners’ home country does not apply to citizens of the Republic of
Korea with respect to a pension equivalent to the national pension under this
Act. (Amended by Law No. 5623, Dec. 31, 1998)
(2) Articles 67 through 69 shall not be applied to a foreigner who becomes a

mandatory, workplace based or Individually Insured Person according to Paragraph
(1). In the case where his/her own country's legislation provides benefits that are
correspondent to the lump-sum refund of Articles 67 through 69 for Koreans
working in that country, the lump-sum refund of this Act shall be provided to
him/her. (Amended by Law No. 5623, Dec. 31, 1998)
(3) [Deleted] (Dec. 23, 2000)

[This Article was Wholly Amended by Law No. 4971, Aug. 4, 1995]
Article 102-2 (Social Security Agreement with Foreign Countries)

Despite provisions of this Act, if the Republic of Korea implements a Social
Security Agreement with any foreign country, the Social Security Agreement shall
apply to such matters as being an Insured Person under the national pension,
payment of the contribution, requirements for pensioners, calculation of pension
amount, and payment of pension.
Article 103 (Enforcement Decree) Matters pertaining to the Enforcement

of this Act shall be prescribed by Presidential Decree.
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CHAPTER 9 PENAL PROVISIONS
Article 104 (Punishment) (1) A person who received benefits through

fraudulent or dishonest means shall be sentenced to imprisonment for a period of no
more than 3 years or fined no more than 10 million Won. (Amended by Law No.
4909, Jan. 5, 1995)
(2) A person who commits one of the following items shall be sentenced to
imprisonment for a period of no more than 1 year or fined no more than 5 million
Won. (Amended by Law No. 5623, Dec. 31, 1998; Law No. 6286, Dec. 23, 2000)
1. An employer who has not paid contributions without justifiable reason within
the payment deadline under the provision of Paragraph (2) of Article 79;
2. An employer, in violation of the provision of Article 98, who has obstructed
employees becoming Insured Persons, has refused employees' promotion or
wage increase to avoid increase in payments or has terminated their
employment, without justifiable reason, or has performed other unfair
treatment;
3. A person who has revealed a business secret, in violation of the provision of
Article 101-3.
4. An employer who makes the Workplace based Insured Person pay the whole
or partial amount of liability under Article 75(2) or who deduces excessive
payable contribution from the wage of the Workplace based Insured Person
while deducing such contribution under Article 77(1).
Article 105 (Punishment) An employer shall be sentenced to a fine of

500,000 Won or less when:
1. He has, in violation of the provision of Article 19(1), failed to submit the
report or has made false statements in such report;
2. He has refused, evaded, obstructed or answered falsely the request for
presentation of documents and other materials, or the investigation and
inquiries made by the Corporation or its officials under Article 101.
Article 106 (Joint Penal Provisions) When a representative of

corporations, a proxy, employer or employee of corporations or an individual has
- 55 -
committed violations described in the provision of Articles 104 or 105 which
prescribes the duty of corporations and individuals, he/she shall be liable to a fine
under the relevant Articles, while the violator shall be separately punished.
Article 107 (Fine for Default) Any person who commits one of the
following acts shall be subject to a fine of 100,000 Won or less:
1. Failure to report under the provision of Article 19(2) or Article 100(1) or (2);
2. Failure to give notice under the provision of Article 21(2);
3. Current or former Insured Person, or pensioners refusing, evading, obstructing
or answering falsely the request for presentation of documents and other
materials or investigation and inquiry made by the Corporation or its officials
under Article 101.
Article 108 (Procedure of Assessment and Collection of Fines) (1)

Fines under Article 107 shall be imposed and collected by the Minister of Health
and Welfare in accordance with Presidential Decree.(Amended by Law No. 5454,
Dec. 13, 1997)
(2) Any person who has a complaint about the imposition of fines under Paragraph
(1) may make an objection to the person who is authorized to impose the fine
within 30 days from the date he/she is given notice.
(3) If a person who has been fined under Paragraph(1) makes objection under
Paragraph(2), the Minister of Health and Welfare shall immediately notify a
competent court of the fact and the said court shall make a decision on the fine
under the procedure in the Non-contentious Cases Act.(Amended by Law No.
5454, Dec. 13, 1997)
(4) If a person who has been fined under Paragraph(1) does not pay the fine
without any objection made within the period specified in Paragraph(2), the fine
shall be collected in accordance with the procedure of disposition of national taxes
in arrears.
ADDENDA
Article 1 (Date of Enforcement) This Act shall become effective on

January 1, 1988, provided that the provision of Articles 22 through 44 and Articles
- 56 -
82 through 87 shall be put into effect on the date of promulgation.
Article 2 (Acts to be Repealed, Etc.) (1) The National Welfare Pension

Special Accounts Act shall be repealed.
(2) The National Welfare Pension Fund established by the Act to be repealed under
Paragraph(1) shall be regarded as the National Pension Fund established by this
Act.
Article 3 (Amendments of Other Acts) (1) In connection with the

enforcement of this Act, the other Acts related shall be amended as follows:
1. "The National Welfare Pension Act" described in Item 3 of Article 8-2 (2) of
the Inheritance Tax Act shall be amended to read as "the National Pension
Act";
2. "The National Welfare Pension Act" described in Article 8(1)2 of the National
Investment Fund Act shall be amended to read as "the National Pension Act";
3. "The National Welfare Pension Act" described in Item 4-D of Article 5 of the
Income Tax shall be amended to read as "the National Pension Act";
4. "The National Welfare Pension Special Accounts Act" described in Article
10-2(1)-1 of the House Construction Promotion Act shall be amended to read
as "the National Pension Act".
(2) Wherever the previous Act of the National Welfare Pension Act or the National
Welfare Pension Special Accounts Act is quoted or applied mutatis mutandis to
other than those referred to in Paragraph(1), the corresponding provision of this Act
shall be regarded as quoted or applied mutatis mutandis instead of the provision of
the previous Act.
Article 4 (Interim Measures regarding Contributions) (1) The

contributions of the Workplace based Insured Persons shall be governed by this
Article until 1997 despite the provision of Article 75(2), and the amount of the
contributions shall be as follows: (Amended by Law No. 4909, Jan. 5, 1995)
1. Liability and contribution shall respectively be an amount equal to 15/1000 of
the Standard Monthly Income from 1988 to 1992, and 20/1000 of the Standard
Monthly Income from 1993 to 1997;
2. Converted retirement payment reserve shall be zero from 1988 to 1992, and
- 57 -
20/1000 of the Standard Monthly Income from 1993 to 1997.
(2) The contribution from a voluntarily or Voluntarily & Continuously Insured

Person shall be 30/1000 of the Standard Monthly Income from 1988 to 1992 and
60/1000 of the Standard Monthly Income from 1993 to 1997, notwithstanding Article
75(3). (Amended by Law No. 4909, Jan. 5, 1995)
Article 5 (Special Exceptions for Old-age Pension) (1) If a person

from 45 to less than 60 years of age (40 to less than 55 for special occupation
employees) as of January 1, 1988 has the Insured period of 5 years or longer,
he/she shall be paid a certain amount of pension, notwithstanding Article 56
(hereinafter referred to as the "Special Old-age Pension")
(2) The amount of the Special Old-age Pension under Paragraph (1) shall be equal
to 250/1000 of the basic pension amount, plus the additional pension amount, and
shall be increased by 50/1000 of the basic pension amount for an excess year
(every one month less than 1 year shall be calculated by 1/12 year) of the Insured
period in excess of 5 years. (Amended by Law No. 5623, Dec. 31, 1998)
Article 6 (Arrangement for Establishment of the Corporation) (1)

The Minister of Health and Welfare shall commission 5 members of the
Establishment Committee responsible for establishing the Corporation.
(2) The members of the Establishment Committee shall work out the articles of
incorporation and obtain the approval of the Minister of Health and Welfare
for it.
(3) When the members of the Establishment Committee have obtained approval for
the articles of incorporation under Paragraph(2), they shall immediately register the
Corporation.
(4) When the Chief Director of the Corporation has been appointed, the members of
the Establishment Committee shall immediately transfer duties to him/her.
(5) Upon the transfer of duties pursuant to Paragraph(4), the members of the
Establishment Committee shall be regarded as dismissed.
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Article 7 (Arrangement for Enforcement of this Act) (1) The
Minister of Health and Welfare or the Corporation may ask, before the enforcement
of this Act, employers and other persons concerned for their cooperation including
the furnishing of materials necessary for the enforcement of this Act.
(2) Those who have been asked for the cooperations under Paragraph(1) shall be
faithful to this request.
ADDENDA (Law No. 4110, Mar. 31, 1989)
(1) (Date of Enforcement) This Act shall become effective on the date of
promulgation.
(2) (Interim Measures for Pensioners of Disability Pension) The

amended provision of Article 58(1), (2) shall be applied the same to a person who
becomes disabled due to injury originating from January 1, 1988 to the date of
enforcement of this Act.
ADDENDA (Law No. 4541, Mar. 6, 1993)
Article 1 (Date of Enforcement) This Act shall become effective on the

date of promulgation.(Proviso was omitted)
Article 2 through 5 (Omitted)
ADDENDA (Law No. 4909, Jan. 5, 1995)
Article 1 (Date of Enforcement) This Act shall become effective from

July 1, 1995.
Article 2 (Interim Measures regarding the Insured Status of
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Former Individually Insured Persons) Those among Voluntarily Insured
Persons who have been excluded from Individually Insured Persons under the
revised provision of Article 10 at the time this Law was put into effect, shall be
regarded as Voluntarily Insured Persons under the revised provision of Article 10-2.
Article 3 (Special Exceptions for Coverage of Farmers &

Fishermen) Farmers & Fishermen from 60 to less than 65 years of age at the
time this Act is put into effect may be Individually Insured Persons until they are
70 years of age under the revised provision of Article 10, provided that an
application to the Corporation is submitted no later than December 31, 1995 in
accordance with Ordinance of the Ministry of Health and Welfare regardless of Article 6.
Article 4 (Interim Measures regarding Contributions from

Individually Insured Persons) (Deleted) <Dec. 31, 1998>
Article 5 (Contribution Subsidies for Farmers & Fishermen) The

amount more than 1/3 of contributions of the Standard Monthly Income of the
lowest class shall be equally subsidized by Dec. 31, 2004 to farmers & fishermen
who have become Individually Insured Persons and Individually Insured Persons
who have become Voluntarily & Continuously Insured Persons under Article 10 or
the revised provision of Article 3 of the Addenda in the Special Accounts for
Management of Special Farming and Fishing Taxes, regardless of the revised
provision of Article 75(3). (Amended by Law No. 5623, Dec. 31, 1998)
Article 6 (Special Cases of Old-age Pension for Individually

Insured Persons) (1) In the case where an Individually Insured Person under
the revised provision of Article 10 from 45 to less than 60 years of age at the time
this Act is put into effect and an Individually Insured Person under the revised
provision of Article 3 of the Addenda have the Insured period of 5 years or longer,
they shall be paid a certain amount of pension, notwithstanding Article 56.
(Hereinafter referred to as the "Special Old-age Pension")
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(every month less than 1 year shall be calculated as 1/12 year) of the Insured
period in excess of 5 years. (Amended by Law No. 5623, Dec. 31, 1998)
Article 7 (Interim Measures for Collection Contributions of

Individually Insured Persons) The revised provision of Article 79 shall not
be applied to Individually Insured Persons under the revised provision of Article 10,
until June 30, 1997.
Article 8 (Arrangement for Enforcement of this Act) The Minister of

Health and Welfare or the Corporation may ask, before the enforcement of this Act,
the central government, local self-governing bodies, other public bodies, and
Individually Insured Persons and other persons concerned, for their cooperation
including the supply of necessary materials for the enforcement of this Act.
ADDENDA (Law No. 4971, Aug. 4, 1995)
(1) (Date of Enforcement) This Act shall become effective on the date of
promulgation.
(2) (Interim Measures to Foreigners in the Covered Workplace)

Foreigners who have been Workplace based Insured Persons by submitting an
application under the previous provision shall follow the provision of Articles 67
through 69 for the Insured period before the enforcement of this Act, regardless of
the revised provision of Article 102(2).
ADDENDA (Law No. 5453, Dec. 13, 1997)

January 1, 1998.(Proviso was omitted)
Article 2 (Omitted)
- 61 -
This Act shall become effective on January 1, 1998.(Proviso was omitted)

January 1, 1999, provided that the revised provisions of Articles 3, 8, 10 through 12,
17, 19, 68, 75 through 79, 81-2 and 102 become effective on April 1, 1999, and the
revised provision of Article 72-2 becomes effective on January 1, 2000.
Article 2 (Preparation for Enforcement of this Act) (1) The Minister

of Health and Welfare or the Corporation may ask, before the enforcement of this
Act, the central government, local self-governing bodies, other public bodies,
Individually Insured Persons and other persons concerned for their cooperation,
including the submitting of materials necessary for the enforcement of this Act.
(2) The central government, local self-governing bodies, other public bodies,
Individually Insured Persons and other persons concerned who have been asked for
their cooperation, shall be faithful to this request.
Article 3 (Application Examples regarding Age for Payment of

Benefits) The age for payment of benefits among the revised provisions of
Article 48(1)-3, 56(1), 56(2) through (4), each item of Article 57(3) and (4), each
item of Article 57-2(1), Article 57-4(1), the revised provisions of Article 58(2), the
proviso of item 1, 3, 5 of Article 63(1), the provisions of the main text of Article
66(1) and the proviso of Article 67(1)1 and 67(2) and the revised provision of 93-2
shall, irrespective of each provision for the age of payment, have the added age of
1 year from 2013 to 2017, 2 years from 2018 to 2022, 3 years from 2023 to 2027, 4
- 62 -
years from 2028 to 2032 and 5 years after 2033, respectively.
Article 4 (Application Examples regarding Contributions, Etc.) (1)

Contributions of Individually Insured Persons under the revised provision of Article
10, Voluntarily Insured Persons under the provision of Article 10-2, Individually
Insured Persons under the provision of Article 14 of the Addenda and Voluntarily &
Continuously Insured Persons who are not employed at a covered workplace shall
be the amount conforming to 30/1000 of Standard Monthly Income from April, 1999
to June, 2000, 40/1000 of Standard Monthly Income from July, 2000 to June, 2001,
50/1000 of Standard Monthly Income from July, 2001 to June, 2002, 60/1000 of
Standard Monthly Income from July, 2002 to June, 2003, 70/1000 of Standard
Monthly Income from July, 2003 to June, 2004, and 80/1000 of Standard Monthly
Income from July, 2004 to June, 2005, irrespective of the revised provision of Article
4(1) and Article 75(3).
(2) Contribution and liability under the revised provision of Article 75 (2) and
contributions under the provision of Article 75(3) shall not be adjusted until 2009,
irrespective of the revised provision of Article 4(1)
Article 5 (Interim Measures regarding Term of Office of the

National Pension Council, Etc.) (1) Members of the National Pension Council
and Operation Committee (Ipso facto members excluded) under the previous
provision at the time this Act is put into effect shall carry out his/her duties until
the member of the same committee is newly appointed or commissioned under this
Act. In this case, the term of office of the predecessor shall be until the day
preceding the day when the successor is appointed or commissioned.
(2) The term of office of the Chief Director, the Executive Director and the auditor
being in service at the time this Act is put into effect shall follow the previous
provision, and the director (ipso facto director excluded) shall carry out his/her
duties until the director is newly appointed under this Act. In this case, the term of
office of the predecessor shall be until the day preceding the day when the
successor is appointed.
Article 6 (Interim Measures regarding the Calculation of the

Insured Period of Workplace based Insured Persons) Delinquency of
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payment which has taken place before April 1, 1999 shall follow the previous
provision, irrespective of the proviso of Article 17(2) and the revised provisions of
Article 17(3).
Article 7 (Interim Measures regarding Persons Excluded from

Workplace based and Individually Insured Persons) (1) Workplace
based and Individually Insured Persons excluded from coverage under the proviso of
Article 8(1), the former part of Article 8(2) and the revised provision of Article 10
shall be regarded as workplace based and Individually Insured Persons.
(2) When a workplace based or Individually Insured Person under the provision of
Paragraph (1) wishes to withdraw from participation, he/she may be disqualified by
applying to the Corporation as determined by Ordinance of the Ministry of Health
and Welfare, irrespective of the cause of disqualification of Insured status under the
provision of Article 12(1) and the revised provision of Article 12(2).
Article 8 (Interim Measures regarding the Payment of Benefits)

(1) The payment of benefits of which the causes of payment take place before the
enforcement of this Act shall follow the previous provision.
(2) The calculation of the basic pension amount conforming to the Insured period
before the enforcement of this Act shall follow the previous provision, irrespective
of the revised provision of Article 47.
Article 9 (Interim Measures regarding Collection of Unjust

Benefits, Etc.) The collection of unjust benefits, etc. due to causes which have
occurred before the enforcement of this Act shall follow the previous provision,
irrespective of the revised provision of Article 53(1).
Article 10 (Interim Measures regarding Divided Pension) For the

person who had reasons for payment of Divided Pension under the revised
provision of Article 57-2(1) before the enforcement of this Act, the revised
provisions regarding Divided Pension under the revised Articles 57-2 and 57-3 shall
be applied to Old-age Pension benefits from the time after the enforcement of this
Act.
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Article 11 (Interim Measures regarding Contributions Payment,
Etc.) (1) Farmers and fishermen who became Individually Insured Persons under
the previous provision as of April 1, 1999 shall be regarded as farmers and
fishermen for quarterly payment of contributions and subsidy of contributions, etc.
(2) Contributions of Individually Insured Persons (farmers and fishermen excluded)

whose due date of contributions payment is determined separately by the previous
provision, as of April 1, 1999, may be paid by the 10th of the following month of
the quarter concerned, irrespective of the revised provision of the proviso of Article
76(1). When contributions have not been paid for 2 consecutive quarters within the
due date of payment without justifiable reason, it shall not be paid quarterly.
Article 12 (Interim Measures regarding Actions of Committee)

Actions towards or by the previous National Pension Payment Deliberation
Committee and the National Pension Review Committee before the enforcement of
this Act shall be regarded as actions towards or by the National Pension Appeal
Committee and the National Pension Review Committee under this Act.
Article 13 (Interim Measures regarding Contributions of Former

Individually Insured Persons) Contributions of persons eligible to be
Individually Insured Persons (Individually Insured Persons who become Voluntarily
& Continuously Insured Persons included) under the previous provisions from
January 1, 1999 to March 31, 1999 shall follow the previous provisions from
January, 1999 to March 1999.
Article 14 (Special Exceptions regarding Coverage of the Aged)

Persons from 60 to less than 65 years of age as of April 1, 1999 shall be
Individually Insured Persons under the revised provision of Article 10, provided that
an application to the Corporation is submitted no later than March 31, 2000 in
accordance with Ordinance of the Ministry of Health and Welfare, irrespective of
the provision of Article 6 and revised provision of Article 10.
Article 15 (Special Exceptions regarding Old-age Pension) (1) In

the case where a person aged from 50 to less than 60 as of April 1, 1999
corresponds to any of the following items, he/she shall be paid a certain amount of
pension from the day prescribed in the item concerned, irrespective of the revised
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provision of Article 56.
1. Persons whose Insured period ranges from 5 to less than 10 years before
he/she attains 60 years of age : On their 60th birthday.
2. Persons whose Insured period is 5 years or more after he/she attains 60 years
of age : The day on which Insured status is lost.
(every month less than 1 year shall be calculated as 1/12 year) of the Insured
period in excess of 5 years.
(3) In the case where a person who becomes an Individually Insured Person under
the provision of Article 14 of the Addenda has been participating for 5 years or
more and loses his/her Insured status, the provision of Paragraphs (1) and (2) shall
be applied mutatis mutandis.
Article 16 (Special Exceptions regarding Payment of Lump-sum

Refund, Etc.) (1) When a person who has been disqualified as a Workplace
based Insured Person under the previous provision at the time when this Act is put
into effect cannot be paid Old-age Pension under the revised provision of Article 56
under the condition that he/she is not employed in work for income for 1 year or
more, he/she shall be paid Lump-sum Refund by Dec. 31, 2000, irrespective of the
revised provision of Articles 67(1) and 69. In this case, the scope of not being
engaged in work for income shall be determined by Presidential Decree.
(2) A person paid a Lump-sum Refund by the provision of Paragraph (1) may
return the refund, irrespective of the revised provision of Article 68(1).
(3) If a person with the right to retirement pension, etc. before April 1, 1999
loses his/her workplace based or individually Insured status, the Lump-sum
Refund may be paid, despite the amended provision of Article 67(1)1. (Newly
Inserted by Law No. 6286, Dec. 23, 2000)
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ADDENDA (Law No. 5982, May. 24, 1999)

date of promulgation.(Proviso was omitted)
Article 2 through 6 (Omitted)
ADDENDA (Law No. 6027, Sep. 7, 1999)

date of promulgation.

Refund) A person described in the revised provision of items 3 and 4 of Article
67(1) may also receive the Lump-sum Refund.

Refund, Etc. for Individually Insured Persons and Voluntarily
Insured Persons) (1) When a person who has been disqualified as an
Individually Insured Person or a Voluntarily Insured Person before January 1, 1999
is not engaged in income earning activities for 1 year or longer and is not eligible
for Old-age Pension under Article 56, he/she shall be paid Lump-sum Refund by
Dec. 31, 2000, irrespective of the revised provision of Article 67(1) and Article 69.
In this case, the scope of not being engaged in work for income shall be
(2) A person who is paid the Lump-sum refund by the provision of Paragraph (1)
may return the refund, irrespective of the revised provision of Article 68(1).
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Article 2 to 6 [Deleted]

Article 2 (Special Cases of Payment of Lump-sum Refund to

Those Who are Granted Livelihood Stabilization Loan) (1) An Insured
Person who has been granted livelihood stabilization loans for the unemployed
during the period from May 11, 1998 to December 31, 1998 (including those who
apply for such loans before December 31, 1998 and receive it till January 31, 1999)
and has not returned all of the principal and interest may be granted the lump-sum
refund equivalent to the unreturned amount, despite Article 67(1) and Article 69.
(2) With regard to application and payment of lump-sum refund, and payment of
refund return under Paragraph (1), the provisions of Article 67(2) and (3), and
Article 68 shall be applied. In calculating the lump-sum refund for payment, the
Insured period and contribution shall be calculated in sequential order from the first
Insured period, and the period for calculation of interest shall be from the month
following the month of the loss of the Insured status before receiving the loan
belongs to, to the month of application for lump-sum refund.

date of promulgation. However, the amended provisions of Articles 8(1)2, 10/4, 43,
76(5)(6), 78, 79, 80, 81-3, and 83(3) shall become effective from April 1, 2001, and
those of Article 83(2) shall become effective from July 1, 2001.
Article 2 (Application of Payment of Additional Pension) The

amended provision of Article 48(1) shall apply the additional pension amount paid
after enforcement of this Act to those who have obtained the benefit right before
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enforcement of this Act.
Article 3 (Application of Payment Period of Pension) The amended

provision of Article 50(1) shall be applied to the person applying for return of
Lump-sum Refund or postponed contributions payment after enforcement of this
Act.
Article 4 (Interim Measures for Payment of Pension) Pension for the

first month of the enforcement of this Act or for the month preceding shall be paid
at the end of the first month of the enforcement of this Act.
Article 5 (Interim Measures for The Person Protected Under the

National Basic Living Security Act) The person protected under the
National Basic Living Security Act who maintains his/her status as a workplace
based or Individually Insured Person in accordance with the provisions made before
enforcement of this Act shall be deemed as a workplace based or Individually
Insured Person under Articles 8 and 10, despite Article 8(1) and item 4 of Article
10.
Article 6 (Interim Measures Regarding Benefit Payment) (1)

Payment of benefits shall continue pursuant to previous provisions in the case
where the reason for payment occurred before enforcement of this Act
(2) If the amount calculated under Article 47(1)1 after enforcement of this Act is
less than 1,271,595 won, the amount shall be deemed as 1,271,595 won, despite
Article 47(1)1.
This English text is not official, in case of any diversions of

interpretation, only the Korean text is official and shall prevail.
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- 70 -

National Pension Act (English Translated Version As of Jan (1) (1) 2005)

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National Pension Act (English Translated Version As of Jan (1) (1) 2005)

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NATIONAL PENSION ACT

National Pension Service

CHAPTER 1 GENERAL PROVISIONS (Article 1 ～ 5) ................................ 1

CHAPTER 2 NATIONAL PENSION INSURED PERSONS

CHAPTER 3 NATIONAL PENSION SERVICE (Article 22 ～ 44) ................... 12

CHAPTER 4 PENSION BENEFITS (Article 45 ～ 73) ................................ 19

Section 1 General Rules

Section 2 Old-age Pension

Section 3 Disability Pension

Section 4 Survivor Pension

Section 5 Lump-sum Refund, Etc.

Section 6 Restrictions on Benefit Payment

CHAPTER 5 FINANCIAL RESOURCES AND COLLECTION OF

CHAPTER 6 NATIONAL PENSION FUND (Article 82 ～ 87) .................. 43

CHAPTER 7 CLAIM AND REQUEST FOR REVIEW (Article 88 ～ 92) .......... 49

CHAPTER 8 SUPPLEMENTARY RULES (Article 93 ～ 103) ................. 50

CHAPTER 9 PENAL PROVISIONS (Article 104 ～ 108) ........................ 55

Promulgated by Law No. 3902 Dec. 31 1986

CHAPTER 1 GENERAL PROVISIONS

Article 1 (Objective) The objective of this Act is to provide pension benefits

Article 3 (Definitions) (1) The terms of the Act shall be defined as

Article 4 (Valuation of Financial Equilibrium of the National

Article 5 (National Pension Council) (1) The National Pension Council

(2) The National Pension Council shall consist of a Chairman, Vice-chairman,

CHAPTER 2 NATIONAL PENSION INSURED PERSONS

Article 6 (Coverage) Citizens of the Republic of Korea aged from 18 to less

Article 7 (Categories of Insured Persons) Insured Persons shall be

Article 8 (Workplace based Insured Persons) (1) Employees and

Article 9 (Fictitious Coverage) In the case where the covered workplace

Article 10 (Individually Insured Persons) A person from 18 to less

Article 10-2 (Voluntarily Insured Persons) (1) In the case where a

Article 11 (Acquisition of Insured Status) (1) A Workplace based

Article 12 (Discontinuation of Insured Status) (1) A Workplace based

Article 13 (Voluntarily & Continuously Insured Persons) (1) Despite

Article 14 (Confirmation of Insured Status) (1) The National Pension

Article 15 (Presumption of Death) The Insured Person reported as

Article 17 (Calculation of Insured Period) (1) The Insured Person's

Article 18 (Totalling of the Insured Period) (1) When a person is

Article 19 (Reports) (1) The employer of Workplace based Insured Persons

Article 20 (Notice to Reporters, Etc.) (1) Upon receiving the report as

Article 21 (Notice to Insured Persons, Etc.) (1) When the National

CHAPTER 3 NATIONAL PENSION SERVICE

Article 22 (Establishment of the National Pension Service) The

Article 23 (Function of the Corporation) The Corporation shall implement

Article 24 (Legal Status of the Corporation) The Corporation shall be a

Article 26 (Articles of Incorporation) (1) The articles of incorporation of

Article 27 (Registration of Establishment) The Corporation shall come

Article 28 (Directors and Auditors) (1) The Corporation shall have a

Article 28-2 (Executive Director of the Fund) (1) Among the

Article 29 (Term of Office of Directors and Auditors) The term of

Article 30 (Duties of Directors and Auditors) (1) The Chief Director

Article 30-2 (Appointment of Agent) The Chief Director may appoint,

Article 31 (Disqualifications of Directors and Auditors) A person

Article 32 (Ipso Facto Retirement or Dismissal of Directors and

Article 33 (Restriction of Concurrent Directors and Officers) The

Article 34 (Board of Directors) (1) The Board of Directors of the

Article 35 (Appointment and Dismissal of Staffs) The Chief Director

Article 36 (Status of Directors and Staffs) The directors and staffs of

Article 38 (Accounts of the Corporation) (1) The fiscal year of the

Article 39 (Revenues and Expenses of the Corporation) The

Article 40 (Temporary Loans and Conversion) (1) If the fund for

Article 41 (Treatment of Surplus) In the case where there is any surplus