[Alpha Biz= Paul Lee] Seoul, September 25, 2025 – The National Pension Service (NPS) paid out a total of KRW 689.7 billion in lump-sum refunds during the first half of 2025, already exceeding half of last year’s total payout, according to data released by Rep. Seo Myung-ok of the People Power Party.
Approximately 102,000 people received refunds during the period.
What Is a Lump-Sum Refund?
The lump-sum refund system applies when a contributor loses eligibility for pension benefits without meeting the required conditions for receiving old-age or disability pensions, and when the likelihood of rejoining the system is low. In such cases, the NPS returns the contributions previously paid by the individual.
The sharp increase highlights both structural challenges in Korea’s pension participation rates and the growing number of individuals unable to meet the minimum requirements for pension benefits.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
