1.2 Trillion KRW of Incorrectly Paid National Pension... 70 Billion KRW Still Unreturned

National Pension Overpayment Data Released to the National Assembly
600 Million Won Cannot Be Returned Due to Expiration of Statute of Limitations

Over the past 5 years and 6 months, the amount of incorrectly paid National Pension premiums has exceeded 1 trillion won. Of this, more than 70 billion won has yet to be refunded, and notably, nearly 600 million won has passed the statute of limitations, making it impossible to ever return to the subscribers.

National Pension Service Headquarters.
Photo by Yonhap News

On the 20th, Lee Jong-sung, a member of the People Power Party on the National Assembly's Health and Welfare Committee, announced based on data submitted by the National Pension Service and the National Health Insurance Service that from 2018 to June of this year, the total number of overpayment cases reached 1,932,000, amounting to 1.27218 trillion won.

The number of overpayment cases and amounts were ▲ 2018: 313,000 cases (145.571 billion won) ▲ 2019: 345,000 cases (215.218 billion won) ▲ 2020: 340,000 cases (224.694 billion won) ▲ 2021: 338,000 cases (255.351 billion won) ▲ 2022: 350,000 cases (276.958 billion won) ▲ 2023 (June): 246,000 cases (154.388 billion won), showing a continuous increase. On average, about 330,000 overpayment cases occur annually, with the amount increasing each year. In 2022, overpayments increased by 90.2% compared to 2018, reaching 276.1 billion won.

National Pension overpayments refer to amounts paid in excess of the required contributions. This includes cases where premiums are paid twice or amounts are mistakenly paid. Delayed reporting of changes in subscriber status (regional or workplace) can also result in overpayments.

Additionally, about 500 million won is spent annually on administrative costs to notify individuals of overpaid National Pension premiums. This is because even if the National Pension Service determines that an overpayment has occurred, refunds can only be made upon the subscriber's application.

Among the overpayments that occurred from 2018 to June this year, approximately 7.9%, or about 152,000 cases (71.048 billion won), have yet to be refunded to subscribers.

Furthermore, of the amounts decided for refund during the same period, 587 million won for which the right to claim a refund was not exercised has passed the statute of limitations under the National Pension Act, making it impossible to return to the subscribers.

Annual administrative costs incurred due to overpayments, including sending refund application notices, were ▲ 2018: 456 million won ▲ 2019: 536 million won ▲ 2020: 519 million won ▲ 2021: 523 million won ▲ 2022: 461 million won ▲ 2023 (June): 289 million won, totaling 2.784 billion won.

Rep. Lee stated, "Despite continuous raising of this issue, overpayments continue to increase," adding, "It is necessary to establish countermeasures to minimize overpayments and enhance public trust in the National Pension."