How can I Receive My Spouse’s National Pension Division in Divorce Litigation in Korea?
Bo-ram Kim Managing Partner
Request a consultation1. What Is The Korean National Pension(국민연금)?
The National Pension is a public pension scheme that provides income for South Korean citizens after retirement. It is run by the government to help secure the livelihood of the elderly.
All South Korean nationals between ages 18-59 must enroll in and pay contributions to the National Pension, with a few exceptions like low-income households. The contributions are automatically deducted from an employee's monthly paycheck.
The contribution amount is calculated as 9% of your monthly income, split evenly between the employee and employer each paying 4.5%. However, There are income ceilings when calculating the contribution amount. For 2023, the maximum monthly income for contribution calculations is 5,180,000 won (USD 4,100).
After paying into the system for at least 10 years, you become eligible to receive a monthly pension payment upon reaching certain age(※). The pension amount is based on your average income and the number of years you contributed.
For example, if your average monthly income was 2 million won (USD 1,600) and you contributed for 20 years, your estimated monthly pension at age 62 would be around 950,000 won (USD 750).
※ The age to start receiving pension benefits is gradually increasing :
Born before 1952: 60 years old
Born 1953-1956: 61 years old
Born 1957-1960: 62 years old
Born 1961-1964: 63 years old
Born 1965-1968: 64 years old
Born 1969 and after: 65 years old
The National Pension aims to provide stable income to support the basic livelihood of the elderly after retirement when their earning abilities may decline. It is a key part of Korea's social security system.
2. Property Division of The Korean National Pension in Divorce
So, how is the National Pension divided upon divorce in Korea?
① Requirements for National Pension Division
According to Article 64 of the National Pension Act, if you have maintained a marital relationship for at least 5 years during your spouse's National Pension enrollment period, you may be eligible to receive a portion of your spouse's National Pension through property division.
However, you must meet all of the following requirements as stipulated by the law:
1. You must be divorced from your spouse
2. Your former spouse must be entitled to receive an old-age pension
3. You must be 60 years of age or older
② National Pension Division Ratio
The National Pension is divided equally, with each spouse receiving 50% of the amount corresponding to the duration of the marriage. Therefore, generally, the longer the marriage, the larger the amount of pension that can be divided.
However, if a different ratio was determined through a property division lawsuit, the National Pension will be divided according to the ratio determined by the court's decision.
③ Example of National Pension Division in Korea
If your spouse is eligible to receive a total of 100 million won (approximately USD 75,000) in National Pension benefits, would you be able to receive 50 million won (approximately USD 37,500) as your share? The answer depends on the specific circumstances. Let's examine the following example:
Marriage duration: 20 years (assuming the entire marriage period is included in the National Pension enrollment period)
Spouse's National Pension enrollment period: 25 years
Total National Pension amount subject to division: 100 million won (approximately USD 75,000)
Amount that can be claimed through pension division: 100 million won * (20 years/25 years) * 50% = 40 million won (approximately USD 30,000)
④ Application and Receipt Timing for National Pension Division
You can apply for National Pension division immediately after divorce. However, it's important to note that regardless of when you apply, you can only receive the pension when you meet all the aforementioned conditions, such as reaching the age of 60.
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