Pension Reform Targets the “Missing Middle” of South Korea’s Workforce (Image courtesy of Yonhap)
SEOUL, Oct. 21 (Korea Bizwire) — South Korea will expand its national pension premium support program starting in 2026 to cover low-income individuals who have temporarily lost income due to job loss or business closure, even if they do not immediately resume payments, the government announced Monday.
The reform, part of the pension overhaul agreed upon by both ruling and opposition parties earlier this year, aims to close coverage gaps in the social safety net and strengthen income security for vulnerable citizens.
Currently, the National Pension Service (NPS) subsidizes 50 percent of pension premiums for up to one year only for those who restart payments after a period of exemption caused by financial hardship.
Under the revised system, low-income self-employed and regional subscribers earning less than 800,000 won ($565) per month will be eligible for support automatically, regardless of payment resumption.
A National Pension Service office in Jeonju, North Jeolla Province. (image: Yonhap)
Since the subsidy program was first introduced in 2022, more than 300,000 people have received a total of 112.1 billion won in government support, with participation growing more than fivefold in three years.
About 91 percent of recipients continued paying premiums even after the support period ended, suggesting the policy’s effectiveness in re-engaging citizens with the pension system.
The Health Ministry said the change marks a shift from occupation-based support—such as long-standing assistance for farmers and fishermen—to a broader, income-based model.
The expansion, it added, underscores the government’s commitment to ensuring that temporary income disruptions do not permanently derail citizens’ preparation for retirement.
M. H. Lee (mhlee@koreabizwire.com)
