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Some high net worth individuals default on National Pension payments

Some high net worth individuals default on National Pension payments

Posted October. 06, 2021 07:24,   

Updated October. 06, 2021 07:24


The number of people that do not pay National Pension and pay only National Health Insurance has exceeded 240,000. When National Health Insurance is unpaid, taxpayers are required to foot medical bills in full, while the impact of unpaid National Pension is relatively less tangible.

According to a data, which was obtained by Rep. Baek Jong-hyun of the People Power Party affiliated with the Health and Welfare Commission at the National Assembly from the National Health Insurance service, there were 241,237 people that have not paid National Pension for more than six months among the number of people who have made full payments of national health insurance over a year.

The number included 53 high net worth individuals who pay more than 2 million won in national health insurance. Unpaid pension by these individuals total to 100 million won. This means that their annual income, estimated based on non-employer scheme and assumptions based on no financial assets or real estate, exceeds 376 million won but they do not pay any national pension. There were 350 individuals that did not pay national pension while paying 1 million to 2 million won each month in national health insurance. 3,077 people chose not to pay national pension while paying 0.5 to 1 million won in health insurance each month.

Meanwhile, there were only 4,083 that made full payments on national pension but did not pay national health insurance for more than six months. Total payable amount was 2.8 billion won.

The National Health Insurance Service sends out notice to non-paying taxpayers after six months of failed payments after reviewing their income and asset status. Those who have not made payments may not be eligible for health insurance benefits when visiting health care facilities.

There are speculations that people do not pay national pension intentionally as they view National Pension to be financially unstable. “There is a growing number of people who do not pay national pension as they question the financial soundness of National Pension,” said Rep. Baek. “We need to raise public trust on financial soundness and strengthen measures to deal with high-value defaulters.”