When someone loses a job or closes a business and cannot pay National Pension contributions, Korean law provides a period in which they need not be paid: the contribution exemption. The cost is that the period does not count as insured time. Later, it can be restored through back payment within a range of less than 10 years. We read Articles 91 and 92 of the National Pension Act in the original.
1. No payment while the ground continues. Seven grounds, including business suspension, unemployment or leave, military service and school enrolment (Article 91(1)).
2. The period drops out of the insured period. A period in which contributions were not paid is not included in the insured period (Article 91(2)).
3. It can be paid later. Exempt periods qualify for back payment, and the paid period is then counted (Article 92(1)2 and (5)).
Who, and on what grounds — Article 91(1)
It applies to a workplace-based or individually insured person. If contributions cannot be paid for one of the reasons below, they need not be paid for as long as the reason continues.
| Item | Ground (statute) | Typical case (ours) |
|---|---|---|
| 1 | Business suspension, unemployment or leave of absence | Job-seeking after leaving, closing a shop, unpaid leave |
| 2 | Performing military service under Article 3 of the Military Service Act | Enlistment |
| 3 | Enrolled at a school under the education Acts | University student |
| 4 and 5 | Held in a correctional, protective-custody or medical-custody facility | — |
| 6 | Missing for less than 1 year | — |
| 7 | Income reduced by disaster or accident, or not engaged in work with income, as prescribed by Presidential Decree | Depends on the Decree |
The text says contributions “need not be paid” — a choice, not a duty (our reading). The procedure is left to Presidential Decree; we did not read the Decree’s application procedure or the detailed grounds under item 7 this time.
The cost — it drops out of the insured period
A period in which contributions were not paid under paragraph (1) shall not be included in the insured period. (Article 91(2))
Because the pension grows with the insured period, the exemption eases today’s burden at the price of a smaller pension later. Eight months of exemption while unemployed means those 8 months are not counted (our example).
The way back — back payment under Article 92
- Scope — an insured person may apply, within a range of less than 10 years, to pay later the contributions for all or part of a period not paid under Article 91(1) ((1)2).
- Amount — the contribution for the month containing the payment deadline × the number of months being paid. The standard monthly income is that of the month of application ((3)).
- Instalments — allowed, with interest set by Presidential Decree added ((4)).
- Effect — the period is included in the insured period as of the day the back payment is made ((5)).
Since the amount follows income in the month of application, paying back 8 months costs 8 times that month’s contribution (our arithmetic). The base is current income, not income at the time of unemployment (our reading). Back payment and other ways to raise the pension are collected in ways to increase your National Pension.
Checklist
- ☐ Which of the seven grounds applies to you
- ☐ Choose knowing the exempt period is not counted
- ☐ When income returns, consider back payment (within less than 10 years)
- ☐ If unemployed, check the unemployment credit as well
Questions that remain
Can the insured period continue during unemployment?
There is an unemployment credit that supports part of the contribution while job-seeking benefit is paid — see ways to increase your National Pension. The gap between retirement and the pension is covered in bridging the income gap.
Is a homemaker with no income exempt?
Article 91 addresses workplace-based and individually insured persons. Joining voluntarily without a duty to be insured is a separate route — see voluntary membership.
Simply falling behind without applying for the exemption brings a late charge — the deadline is the 10th of the following month, then 1/1,500 a day up to 2% and, after 30 days, 1/6,000 a day up to 5% (deadline and late charge).
Sources
- National Pension Act [Act No. 21203, partially amended 16 December 2025] — original text (checked 2 October 2026). Article 91(1) (items 1 to 7) and (2) (not included in the insured period); Article 92(1) (within less than 10 years; item 2), (3), (4) and (5).
- Not read. The Decree’s application procedure, the detailed grounds under Article 91(1)7, and the number of instalments and the interest rate for back payment.
- Our own example. The 8-month example and “8 times” are ours.
Where to check further
- The scheme as a whole — National Pension basics.
- Your own exempt periods and back-payment amount — the National Pension Service (call 1355 in Korea) can confirm them from your record.
Written on 2 October 2026. The provisions are as published by the Korea Law Information Center; the reading and examples are ours.
