Rise in multinational recipients of basic pension spurs review of eligibility

Monthly allowance is for Korean elderly in bottom 70 percent of income levels, but critics say some people with both Korean and foreign nationality with sizable assets overseas are receiving it

(123rf)

The number of elderly individuals with multiple nationalities receiving South Korea's basic pension has jumped fivefold over the past decade, according to government data released Monday.

The data from the Ministry of Health and Welfare shows that the number of pension recipients with multiple nationalities has steadily risen, from 1,047 in 2014, the first year of the pension’s introduction, to 5,699 in 2023. Their proportion also grew from 0.02 percent in 2014 to 0.09 percent last year.

The total amount paid to this group of pensioners also surged from 2.28 billion won in 2014 to 21.2 billion won in 2023, a 9.3-fold increase.

Introduced in 2014 as an additional social safety net for the elderly poor, the pension gives out 334,814 won ($252.47) per month per person, with the amount adjusted for inflation each year.

To qualify, one must be 65 or older and fall in the bottom 70 percent income bracket. The current threshold is 2.13 million won per month, which is calculated based on various income sources, including wages, financial investments and property holdings.

Current regulations restrict pension eligibility for those residing outside Korea for more than 60 days within six months to ensure that only those with a significant presence in Korea benefit from the tax-funded payouts.

The significant increase of recipients with multiple nationalities, however, looks set to spark a thorny debate over whether taxpayers’ money is being paid to wealthy people whose assets outside the country are often difficult to trace.

The government also noted that there were cases where individuals with dual citizenship, who receive sizable personal pensions from foreign countries, became eligible for the basic pension upon returning to Korea, because their traceable Korean assets were small and their income from overseas was not properly accounted for.

“We are closely examining this issue, including overseas cases, to determine whether it is appropriate to pay a basic pension funded by taxes to people with multiple nationalities,” a ministry official said in a statement.

However, some experts warn that excluding individuals based solely on their nationality could amount to discrimination against genuinely needy seniors, potentially undermining the basic pension's purpose.

Additionally, there are concerns that if they are denied basic pensions, the same reasoning could be applied to other welfare benefits, such as medical assistance, which are also funded by taxes.

By Song Seung-hyun(ssh@heraldcorp.com)