A Social Security Agreement between Korea and Chile (“Kor-Chile Agreement”) and a Social Security Agreement between Korea and Finland (“Kor-Finland Agreement”) will take into effect from February 1, 2017. 

*A Social Security Agreement between Korea and Chile was signed on April 22, 2015 and a Social Security Agreement between Korea and Finland was signed on September 9, 2015. 

Social Security Agreements mainly include provisions that exempt detached workers from social security coverage in the other country, while protecting benefits eligibility by enabling people to totalize their contribution periods of both their home and contracting countries.  

Kor-Chile Agreement includes provisions that only cover dual coverage exemption, while Kor-Finland Agreement includes both provisions that cover dual coverage exemption and totalization. 

When Kor-Chile Agreement goes into effect, Korean employees detached to Chile and self-employed persons are exempted to pay Chilean coverage for five years or less. (If the assignment period exceeds five years, a worker may be exempted for additional two years based on the mutual consensus of both countries.)       

In addition, Kor-Finland Agreement takes into effect, Korean employees transferred to Finland and self-employed persons will be exempted from social security coverage. (If the assignment period exceeds five years, additional period can be granted based on consultation of the two countries.) 

Furthermore, if a person has paid pension contributions to both Korea and Finland, the agreement will enable the worker to totalize Korean and Finish coverage to receive benefits, based on the proportion of the worker’s total coverage completed in the paying country. 

With the effectuation of Kor-Chile Agreement and Kor-Finland Agreement, Korea has concluded social security agreements with 31 countries. 

The Korean government plans to push forward in signing social security agreements with more countries in Asia, Central and South Americas and Africa. By doing so, personal and economic exchange would be expanded and eligibility to receive benefits by detached workers would be effectively protected.