Main Contents of the Social Security Agreement Between Korea and Hungary
History of the Agreement with Hungary
- Sep. 2004 : Agreed on negotiating a Social Security Agreement between Korea and Hungary, sent a Korean proposal to Hungary
- Feb. 2005 : Received a Hungarian proposal
- Mar. 2005 : Agreed on the principle of the Agreement between both countries
- Dec. 2005 : Held the first round of Negotiation Meetings for the Agreement in Hungary
- May. 2006 : Signed the Agreement on Social Security between Korea and Hungary
- Oct. 2006 : Received a written notification from Hungary that Hungary has complied with all requirements for entry into force of this Agreement
- Dec. 2006 : Provided a written notification to Hungary that Korea has complied with all requirements for entry into force of this Agreement
- Dec. 2006 : Held meetings for the Implementation of the Agreement between Agencies of both countries
- Jan. 2007 : Signed the Administrative Arrangement for the Agreement
- Mar. 2007 : Social Security Agreement between Korea and Hungary entered into force
Applicable Legislation
- With respect to Korea,
(1) the National Pension Act
(2) the Employment Insurance Act(with regard to Part II only; Exemption From Dual Coverage) - With respect to Hungary,
(1) the legislation concerning the payment of social insurance contributions
(2) the legislation concerning social insurance pensions
(3) the provisions of the act on fostering employment and unemployment benefit in respect to payment obligations related to unemployment benefits.(with regard to Part II only; Exemption From Dual Coverage)
Personal Scope of this Agreement
- This Agreement shall apply to any person who is or who has been subject to the legislation of either Korea or Hungary, and to the dependents and survivors of such a person, irrespective of their nationality. Therefore, any person such as a national of the Contracting Country, a stateless person, a refugee or a national of a third country who is or has been subject to the legislation of either Contracting Country shall be covered by this agreement with his/her dependents and survivors.
- ※ For more information, you may refer to the section Text of Agreement
Exemption from Dual Coverage
- ① In general, an employee is subject to the legislation of a Contracting Country in which he/she is employed.
- ② A self-employed person is subject to the legislation of a Contracting Country in which the person ordinarily resides.
- ③ If a person is employed in the territory of one Contracting Country and is self-employed in the territory of the other Contracting Country for the same period, he/she is subject to the legislation of the Contracting Country in which he/she originally resides.
- ④ A detached worker is exempt from coverage under the legislation of the Contracting Country which he/she is sent to for less than 3 years if he/she is covered under the legislation of his/her home country. This 3-year limit can be extended to 6 years with the proper consent between Agencies of the both country.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
[ Countries that employees and the self-employed pay their contributions to ]
| Type | Work Status | Coverage |
|---|---|---|
| Employee | employed in Hungary | |
| - you are employed and working in Hungary | Hungary | |
| - you are employed in Korea and sent to work in Hungary for less than 3 years (a 3-year extension is available) | Korea | |
| - you are employed in Korea and sent to work in Hungary for more than 3 years (without getting approval for an extension) | Hungary | |
| - you are self-employed in Korea ordinarily residing in Korea and you are also employed in Hungary | Korea | |
| - you ordinarily reside in Korea but you are employed in both Korea and Hungary | Korea | |
| employed in Korea | ||
| - you are employed and working in Korea | Korea | |
| - you are employed in Hungary and sent to work in Korea for less than 3 years(a 3-year extension is available) | Hungary | |
| - you are employed in Hungary and sent to work in Korea for more than 3 years(without getting approval for an extension) | Korea | |
| - you are self-employed in Hungary ordinarily residing in Hungary and you are also employed in Korea | Hungary | |
| - you ordinarily reside in Hungary but you are employed in both Korea and Hungary | Hungary | |
| Self-employed | Self-employed in Hungary | |
| - you ordinarily reside in Korea but are self-employed in Hungary | Korea | |
| - you ordinarily reside in Korea but are self-employed in both Korea and Hungary | Korea | |
| - you are employed in Korea ordinarily residing in Korea but are self-employed in Hungary | Korea | |
| Self-employed in Korea | ||
| - you ordinarily reside in Hungary but are self-employed in Korea | Hungary | |
| - you ordinarily reside in Hungary but are self-employed in both Korea and Hungary | Hungary | |
| - you are employed in Hungary ordinarily residing in Hungary but are self-employed in Korea | Hungary |
Benefits under this Agreement
- Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force. This is possible due to totalization of coverage in both countries.
- ① Korean National Pension Benefits under the Social Security Agreement
- If you have more than 12 months of insured period in Korea but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Korean pension system, you may be able to qualify for Korean benefits by totalizing periods of coverage under the Korean pension system and the Hungarian pension system. However, those periods creditable under the Hungarian pension system, must not coincide with the periods under the legislation of Korea.
Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries. - ② Hungarian Pension Benefits under the Social Security Agreement
- If you have more than 12 months of insured period in Hungary but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Hungarian pension system, you may be able to qualify for Hungarian benefits by totalizing periods of coverage under the Korean pension system and the Hungarian pension system. However, those periods creditable under the Korean pension scheme, must not coincide with the periods under the legislation of Hungary.
- Your benefit is calculated by dividing the Hungarian periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries.
- ③ A person who is or has been subject to the laws of one Contracting Country and who resides within the territory of the other Contracting Country shall, together with his dependents, receive equal treatment with the nationals of the other Contracting Country in the application of the laws of the other Contracting Country regarding the eligibility for and the payment of benefits.
- ④ A Korean Lump-sum refund is paid to Hungarian nationals. However, whether a Lump-sum refund is paid to a national of a third country depends on the reciprocity principle stipulated in the Korean National Pension Act.
- ⑤ However, since there is no provision for a Lump-sum refund in the legislation of the Hungarian Social Insurance Pension System, Korean people cannot be paid a Lump-sum refund from the Hungarian Social Insurance Pension System. Instead, the contributions to the Hungarian Pension System may be calculated toward pension payments according to the legislation of the Hungarian Social Insurance Pension System.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
Agencies of this Agreement
- As regards Korea,
- (1) National Pension Service (NPS)
- As regards Hungary,
- (1) Central Administration of National Pension Insurance (ONYF)→ www.onyf.hu
- (2) National Health Insurance Fund (OEP)→ www.oep.hu
