According to data from the National Pension Service (NPS) provided by National Assembly Health and Welfare Committee member Kim Mi-ae, as of the end of 2023, 150,267 27-year-old regional subscribers had applied for exemption from pension contributions due to a lack of income.
The number of 27-year-olds exempt from contributions declined from a high of 168,000 at the end of 2018, but since 2021, it has consistently remained around the 150,000 mark.
As of the end of September this year, the number of exempted contributors stood at 132,000, approximately 88% of last year's figure.
The exemption status applies to those unable to pay pension contributions due to business closure, unemployment, or temporary leave. Young people in these circumstances can apply to the NPS for this exemption.
Under the National Pension Act, a regional subscriber refers to any Korean citizen aged 18 to 60 who is not affiliated with a specific workplace.
Among this group, those aged 18 to 27 are excluded from compulsory enrollment if they have no income. However, once they turn 27, they become eligible for enrollment regardless of income status.
Nevertheless, approximately 150,000 young people each year are unable to pay their pension contributions due to a lack of income.
Because exemption periods are not counted as part of the total pension contribution period, those who fail to meet the 10-year minimum required for an old-age pension may face delays in receiving their benefits.
According to the National Assembly Research Service, 3.064 million people were classified as exempt among all NPS contributors last year, accounting for 13.9% of the total subscribers.
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150,000 Youth Exempt from Pension Contributions for 3 Years, Sparking Payout Delay Concerns
According to data from the National Pension Service (NPS) provided by National Assembly Health and Welfare Committee member Kim Mi-ae, as of the end of 2023, 1
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