*The information contained in this post is current as of March 2023.
*This post does not explain what the Korean pension is or how it works. This only explains how to request and receive your pension refund.
I recently moved back to the US after five years of living in Seoul, South Korea. I worked for the entire five years I lived in Korea and built up a decently sized pension. As the US has a pension agreement with South Korea, I was able to receive a full refund of my Korean pension when I left, which I picked up at Incheon Airport on the day I left.
The refund process was a bit confusing and the pickup was more time consuming than I expected, so I wanted to share my experience and give tips to make the process easier.
How-to:
1) Check if your home country and South Korea have a pension agreement.
2) Buy your one-way plane ticket!
In order to quality for the refund, you must be planning on leaving South Korea indefinitely aka you cannot have a return ticket. You can request your refund up to 30 days before leaving the country.
3) Print out a copy of your flight itinerary*
*It is important that you have a physical copy of your flight itinerary! A screenshot or picture on your phone will not be accepted.
4) Gather the proper identification and bank documents
You will need your passport, Alien Registration Card (ARC), and your Korean bank book*
*The bank book is technically optional, but the NPS worker may request to see it and/or make a copy of it so it is better to bring it if you have one!
5) Visit the closest NPS office with all your documentation
Search for either 국민연금 on Kakao/Naver maps or visit the NPS site to find the nearest NPS office. The Ansan Center for Foreigners is supposedly more foreigner-friendly, however, you do not need to visit the Ansan office to apply for your refund. You may apply at any office.
6) Apply for your refund
At the NPS office, give the worker your documentation (passport, ARC, bank book, and copy of your flight itinerary). They will give you the refund application form for you to fill out.
The refund application form will ask you how you'd like to receive your refund. You have three options: airport pickup, transfer to a Korean account, or transfer to a foreign account.
- Airport pickup*
- Given only in foreign currency (US dollars, Japanese yen, etc.)
- Given in cash
- Subject to airport currency exchange fees (2.5% as of March '23)
- Received the day you leave Korea (flight date)
- Transfer to Korean account
- Transferred directly to the Korean bank account you provide in your application form
- Estimated to arrive 4-6 weeks after you leave Korea
- Transfer to US account
- Transferred directly to the foreign bank account you provide in your application form
- Subject to current currency exchange rates
- Estimated to arrive 4-6 weeks after you leave Korea
I chose airport pickup so I could receive the money (in cash) straight away. I lost about 2.5% to the airport currency exchange rate, but I wanted to be able to deposit it into my US account straight away when I returned. There are pros and cons to each method.
7) Receive your "Certificate of Acceptance of Application for Lump-sum Refund"
After your application is completed at the NPS office, you will be given a confirmation paper. It will contain the following:
- Reference number
- Beneficiary's name (your name)
- Total number of months contributed
- Total amount paid
- This is not the amount you will receive
- Receiving bank
- 공항지급 if you are doing airport pickup
- Account number
- 공항방문수령 if you are doing airport pickup
- Date of eligibility
- This is your flight date
Do not lose this paper. You will need this paper if you are doing the airport pickup.
If you choose airport pickup, you will also receive a paper with instructions on how to pickup your pension refund in the airport.
The following steps are only applicable if you are doing airport pickup
8) Visit the Incheon Airport NPS counter the day of your flight
I ended up having to run around to do everything, so follow these steps so you don't make the same mistake!
- Get to the airport 4 hours early (or possibly earlier if your flight is in the evening)
- This is 1 hour earlier than the typical recommendation of 3 hours for international flights
- Check your bags first unless you are traveling with light luggage or have someone who can wait with your bags
The NPS counter is in Terminal 1 on the 1st floor next to Exit 2. Give the person at the counter the Certificate of Acceptance of Application for Lump-sum Refund and your passport.
They will give you a "Declaration of Currency or Monetary Instruments". Do not lose this paper.
9) Visit the Woori Bank Foreign Exchange booth
Terminal 1:
- Less than USD 10,000 (9AM-9PM)
- The booth is in front of Counter J on the 3rd floor across from security (not towards the exits)
- It is a small stand-alone booth (not a built-in counter)
- More than USD 10,000 (9AM-4PM)
- Woori Bank Airport Finance Center on B1
- Less than USD 10,000 (9AM-9PM)
- The booth is in front of Counter A on the 3rd floor across from security
- More than USD 10,000 (9AM-4PM)
- Woori Bank Terminal 2 Business Office on B1
Give the worker the Declaration of Currency or Monetary Instruments and your passport. They may ask to see your boarding pass to confirm you are actually leaving.
They will then verify the total amount you are to receive and will give you a receipt that states:
- A. Total refund amount (KRW)
- B. Total value in chosen foreign currency (USD)
- C. Exchange rate on that day (KRW)
- D. Total value from foreign currency to KRW (USD->KRW)
- E. Difference between A & D
Important Notes:
1) If you choose airport pickup, make sure to look up whether or not you need to declare the cash when you land in your home country. (In the case of the US, anything up to USD 10,000 does not need to be declared.)
2) According to the NPS worker I spoke to, there are (very) rare instances where the airport may not have the full amount of the refund in cash on hand (usually only if the refund is extremely large). In this case, you will receive whatever cash they have on hand and transfer the remaining balance to the bank account provided on your application form.
3) Make sure that you have a way to store the cash safely! It's recommended to either separate your cash and put in several different places throughout your luggage or to keep it in a bag either under your shirt or jacket or otherwise close to your body.
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