'How Could This Happen?'... National Pension Service Made Over 100 Billion Won in Erroneous Payments Over 5 Years

Over 100,000 Erroneous Payments in Five and a Half Years, 12.8 Billion Won Unrecovered
"Delayed Reporting and Poor Management Highlight Urgent Need for System Reform"

It has been revealed that the amount of National Pension payments made in error by the National Pension Service over the past five years has exceeded 100 billion won. Of this, 12.8 billion won has still not been recovered.

According to data titled "Status of Erroneous National Pension Payments" submitted by the National Pension Service to Assemblywoman Han Jia of the People Power Party, a member of the National Assembly Health and Welfare Committee, the number of erroneous payments from 2020 to June this year reached 107,449 cases, totaling 100.524 billion won.

Erroneous payments refer to cases where pension payments are made to ineligible recipients, such as through fraudulent claims, delayed or unreported changes in eligibility, and other similar situations. Under the National Pension Act, if three years pass after the payment, it becomes impossible to recover the funds due to the statute of limitations.

The number of erroneous payments increased from 16,391 cases (11.325 billion won) in 2020 to 22,588 cases (24.436 billion won) in 2024, more than doubling. In the first half of this year alone, there were already 12,129 cases (14.494 billion won).

The most common cause was "delayed or unreported changes in eligibility," accounting for 56.8% of all cases. This includes instances where information such as the death of a recipient or changes in dependent family members was not reported in a timely manner, resulting in payments being made to those who were no longer eligible.

The National Pension Service has completed recovery for 102,780 cases, but 4,669 cases (12.757 billion won) remain unrecovered.

Assemblywoman Han pointed out, "Erroneous payments occur due to practical loopholes, such as delayed reporting by recipients and retroactive claims for divided pensions by former spouses of old-age pensioners, as well as inadequate management by the National Pension Service. Since these issues are repeated every year, it is necessary to fundamentally overhaul the payment and recovery system to maintain trust in the National Pension."