National Pension, severance and IRP are three different things

Three things with "pension" or "retirement" in the name confuse many workers in Korea. They are separate systems. Getting one does not replace the others.

1. National Pension (국민연금)
Government social insurance. In 2026 you and your employer each pay 4.75% of your standard monthly income. It comes back as an old-age pension, or in some cases as a lump-sum refund when you leave Korea. Whether you are covered depends on your nationality.

2. Retirement benefit from your employer (퇴직급여)
By law, an employer must provide a retirement benefit for a worker with 1 year or more of continuous service who works 15 hours or more a week on average. Two forms: a lump-sum 퇴직금, due within 14 days of leaving, or a retirement pension plan (퇴직연금): DB, where the amount is fixed in advance, or DC, where the employer pays one twelfth of your yearly pay into your account every year. This is about your job, not your nationality.

3. IRP (개인형 퇴직연금)
A retirement account in your own name at a bank, broker or insurer. Your employer's retirement benefit is paid into it, and you can add your own money.

Leaving Korea: the ordinary-account exception
In principle the retirement benefit must be paid into an IRP account. The enforcement decree lists exceptions where it can go to an ordinary bank account: you are 55 or over; the amount is 3 million won or less (ministry notice in force since 1 September 2026); the worker has died; another law requires a deduction; or a foreign worker who held a status allowing work left Korea after leaving the job. Banks typically ask for your visa and a ticket or proof of departure. The decision sits with your employer, so ask HR which papers they need.

It depends on your length of service, weekly hours, age, nationality and visa.

Next step: on your last day, ask HR in writing: which retirement system applies to me, and where will it be paid?

Sources: Employee Retirement Benefit Security Act, article 4 and article 9; Enforcement Decree, article 3-2; Ministry of Employment and Labor; Woori Bank FAQ. Checked 11 October 2026.