Social security agreement with Republic of Korea into force in February 2017
The bilateral social security agreement between Finland and the Republic of Korea will affect the social security of persons moving between these two countries. The agreement will enter into force on 1 February 2017, and it concerns pensions and unemployment insurance.
The agreement includes provisions regarding so-called posted workers. A posted worker sent by a Finnish employer to the Republic of Korea remains covered by the Finnish earnings-related pension legislation and unemployment insurance for a period of five years, at most, during his/her assignment. During that period, no pension or unemployment insurance contributions will be demanded in the Republic of Korea. Instead, the Finnish employer and Finnish employee shall pay their fees to Finland in accordance with Finnish law. Double insurance payments will be avoided through the agreement.
Correspondingly, employees posted to Finland from the Republic of Korea will remain covered by the Korean system, and the Finnish earnings-related pension system or unemployment insurance will not affect them.
The agreement will also ensure the payment of earnings-related pensions from one contracting state to the other one if the pension recipient no longer lives in the state where the pension has been accrued. National contact points appointed to implement the agreement will help applicants with the pension application procedure and submission of applications. In Finland, these tasks will be carried out by the Finnish Centre for Pensions.
A government decree on the agreement will be issued before the agreement enters into force.
Marja-Terttu Mäkiranta, Ministerial Counsellor/Legal Affairs, Ministry of Social Affairs and Health, tel. +358 295 163170, [email protected] (N.B. no Scandinavian letters å, ä or ö)