Social Security Agreement signed between Finland and Republic of Korea
Finland and Republic of Korea have concluded a social security agreement. The agreement affects the social security of travellers between these two countries. The agreement was signed on 9 September in Soul by Paula Lehtomäki, State Secretary to Prime Minister, on behalf of Finland, and by Cho Tae-yul, Vice Minister, on behalf of Republic of Korea .
The agreement concerns pensions and unemployment insurance. The agreement includes regulations regarding the so-called posted employees. On the basis of the agreement, an employee posted by a Finnish employer to Republic of Korea is covered by the Finnish earnings-related pension legislation and unemployment insurance during his or her employment in Korea. The coverage applies for a period of five years, at the most. During that period, no pension or unemployment insurance contributions are paid to Republic of Korea. Through the agreement, double insurance payments are avoided, which is important both to Finnish enterprises operating in Republic of Korea and to their posted employees.
Correspondingly, employees posted to Finland from Republic of Korea will remain covered by the Republic of Korean system, and the Finnish earnings-related pension system or unemployment insurance will not affect them.
The agreement also includes provisions on paying pension from one contracting state to another if the pension recipient no longer lives in the state paying the pension. This is already possible under the Finnish earnings-related pension legislation. However, an agreement secures reciprocal payment of pensions for persons moving from one country to another.
The social security agreement will enter into force after both Finland and Republic of Korea have completed their internal implementation measures.
Marja-Terttu Mäkiranta, Ministerial Counsellor/Legal Affairs, tel. +358 2951 63170, [email protected]