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Social Security Administration
[Based on SSA Publication No. 05-10197, ICN 470000]
Published March 2001
**PART I--INTRODUCTION**
An agreement effective April 1, 2001, between the United States
and the Republic of Korea (South Korea) improves Social Security
protection for people who work or have worked in both countries.
It helps many people who, without the agreement, would not be
eligible for monthly retirement, disability or survivors benefits
under the Social Security system of one or both countries. It
also helps people who would otherwise have to pay Social Security
taxes to both countries on the same earnings.
The agreement covers Social Security taxes (including the U.S.
Medicare portion) and retirement, disability and survivors
insurance benefits. It doesn't cover benefits under the U.S.
Medicare program or the Supplemental Security Income (SSI)
program.
If you wish to apply for benefits under a program not covered by
the agreement, you may do so directly with the country that
administers the program.
This document covers highlights of the agreement and explains how
you may be affected if you have worked (or will work) in both the
United States and Korea. Please note that you or your employer
must take action in some situations.
THE AGREEMENT MAY HELP YOU AND YOUR FAMILY--
o WHILE YOU WORK--If your work is covered by both the U.S.
and Korean Social Security systems, you (and your employer,
if you are employed) would normally have to pay Social
Security taxes to both countries for the same work. The
agreement eliminates this double coverage, so you pay
taxes to only one system. (See Part II.)
o WHEN YOU APPLY FOR BENEFITS--You may have some Social
Security credits in both countries but not enough U.S.
credits to qualify for regular U.S. Social Security benefits.
In this case, if you have a minimum number of U.S. credits
(see Part IV.A.1), we can count your credits under the
Korean system so you may be able to get a partial benefit
from the U.S. In addition, the agreement can help you
qualify for Korean Social Security benefits even if you
don't meet the normal Korean eligibility requirements
(see Part IV.A.2).
**PART II--COVERAGE AND SOCIAL SECURITY TAXES**
Before the agreement, employees, employers and self-employed
persons could, under certain circumstances, be required to pay
Social Security taxes to both the U.S. and Korea for the same
work.
Under the agreement, if you work as an employee in the U.S., you
normally will be covered by the U.S., and you and your employer
will pay Social Security taxes only to the U.S. If you work as
an employee in Korea, you normally will be covered by Korea, and
you and your employer pay Social Security taxes only to Korea.
But, if your employer sends you from one country to work in the
other country for five years or less, you will remain covered by
the first country and be exempt from Social Security taxes in the
other country.
If you are self-employed and reside in the U.S. or Korea, you
will generally be covered and taxed only by the country where
you reside.
NOTE: In addition to the Korean Social Security taxes that cover
old-age, survivors, and disability benefits, the agreement also
includes the Korean taxes that cover industrial accident insurance.
As a result, workers exempted from Korean Social Security coverage
by the agreement pay no Social Security taxes for this program and
generally cannot receive a benefit from it. If the agreement
exempts you from Korean coverage, you and your employer may wish
to arrange for alternative benefit protection.
The following table shows how you are covered and to which
country you and your employer must pay Social Security taxes. To
avoid also paying taxes to the other country, your employer (or
you, if you are self-employed) must obtain a certificate of
coverage from the country where you will be covered (see
Part III.).
A U.S. worker assigned temporarily to Korea can be covered by U.S.
Social Security only if he or she works for a U.S employer. A
U.S. employer includes a corporation organized under the laws of
the United States or any State, a partnership if at least two-thirds
of the partners are U.S. residents, an individual who is a resident
of the U.S., or a trust if all the trustees are U.S. residents.
The term also includes a foreign affiliate of a U.S. employer if
the U.S. employer has entered into an agreement with the Internal
Revenue Service under section 3121(l) of the Internal Revenue Code
to pay Social Security taxes for U.S. citizens and residents
employed by the affiliate.
YOUR WORK STATUS COVERAGE AND TAXES
You are working in Korea:
For a U.S. employer who:
o Sent you to work in Korea U.S.
for five years or less
o Sent you to work in Korea Korea
for more than five years
o Hired you in Korea Korea
For a non-U.S.employer Korea
For the U.S. Government and you are a:
o U.S. national U.S. (either
Social Security
or federal
retirement program)
o Korean national Korea
You are working in the U.S.:
For an employer in Korea who:
o Sent you to work in the U.S. Korea
for five years or less
o Sent you to work in the U.S. U.S.
for more than five years
o Hired you in the U.S. U.S.
For a non-Korean employer U.S.
For the Korean Government and
you are a:
o Korean national Korea
o U.S. national U.S.
You are self-employed and you:
Reside in the U.S. U.S.
Reside in Korea Korea
If this table doesn't seem to describe your situation and you
are:
o Working in the U.S. Write to the U.S. address
in Part III.A below for
further information.
o Working in Korea Write to the Korean address
in Part III.A below for
further information.
**PART III--CERTIFICATE OF COVERAGE**
A certificate of coverage issued by one country serves as proof
of exemption from Social Security taxes on the same earnings in
the other country.
III.A. Certificates For Employees
To establish an exemption from compulsory coverage and taxes
under the Korean system, your employer must request a certificate
of coverage (form USA/KOR 1) from the U.S. at this address:
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, Maryland 21235-7741
U.S.A.
The request may be sent by FAX, if preferred, to (410) 966-1861.
Please note this FAX number is only for requesting certificates of
coverage. No special form is required to request a certificate.
However, you must provide the following information:
-full name of worker;
-date and place of birth;
-citizenship;
-country of worker's permanent residence;
-U.S. Social Security number;
-date of hire;
-country of hire;
-name and address of the employer in the U.S. and Korea; and
-date of transfer and anticipated date of return.
In addition, your employer must indicate if you remain an
employee of the U.S. company while working in Korea or if you
become an employee of the U.S. company's affiliate in Korea.
If you become an employee of an affiliate, your employer must
indicate if the U.S. company has an agreement with the Internal
Revenue Service under section 3121(l) of the Internal Revenue
Code to pay U.S. Social Security taxes for U.S. citizens and
residents employed by the affiliate and, if yes, the effective
date of the agreement.
Your employer can also request a certificate of U.S. coverage for you
over the Internet using a special online request form.
To establish your exemption from coverage under the U.S. Social
Security system, your employer in Korea must request a certificate
of coverage (form KOR-USA 4) from Korea at this address:
National Pension Corporation
Kukmin-yeonkum Building
7-16 Shincheon-dong, Songpa-gu
Seoul 138-725
KOREA
The same information required for a certificate of coverage from
the U.S. is needed to get a certificate of coverage from Korea
except that you must show your Korean Social Security number
rather than your U.S. Social Security number.
III.B. Certificates For Self-Employed Persons
If you are self-employed and would normally have to pay Social
Security taxes to both the U.S. and Korean systems, you can
establish your exemption from one of the taxes by writing to:
o If you reside in the U.S., the Social Security Administration
at the address in Part III.A above.
o If you reside in Korea, the National Pension Corporation at
the address in Part III.A above.
Be sure to provide the following information in your letter:
-full name;
-date and place of birth;
-citizenship;
-country of permanent residence;
-U.S. and/or Korean Social Security number;
-nature of self-employment activity;
-dates the activity was or will be performed; and
-name and address of your trade or business in both countries.
III.C. Effective Date Of Coverage Exemption
The certificate of coverage you receive from one country will
show the effective date of your exemption from paying Social
Security taxes in the other country. Generally, this will be the
beginning date of your temporary assignment in the other country
or the beginning date of your self-employment activity there.
Certificates of coverage issued by Korea should be retained by
the employer in the U.S. in case of an audit by the Internal
Revenue Service (IRS). No copy should be sent to the IRS unless
specifically requested by the IRS. However, a self-employed
individual must attach a photocopy of the certificate to his or
her income tax return each year as proof of the U.S. exemption.
Copies of certificates of coverage issued by the U.S. will be
provided for both the employee and employer. It will be their
responsibility to present the certificate to the Korean
authorities when requested to do so. To avoid any difficulties,
your employer (or you, if you are self-employed) should request a
certificate as early as possible, preferably before your work in
the other country begins.
**PART IV--MONTHLY BENEFITS**
The following table shows the various types of Social Security
benefits payable under the U.S. and Korean Social Security
systems and briefly describes the eligibility requirements for
each. If you don't meet the requirements for regular benefits,
the agreement may help you to qualify (see Part IV.A below).
This table is only a general guide. You can get more specific
information about U.S. benefits at any U.S. Social Security
office or by calling our toll-free number at 1-800-772-1213 or
by visiting Social Security's website at www.ssa.gov. More
detailed information about the Korean system may be obtained
by writing to the Korean address in Part V of this document
or by visiting the Korean National Pension Corporation's website
at www.npc.or.kr.
Under U.S. Social Security, you may earn up to four credits each
year depending on the amount of your covered earnings. For
example, in the year 2001, you get one credit for each $830 of
your covered annual earnings up to a maximum of four credits for
the year. Under the Korean system, credits are measured in
months. To simplify the information in the table, requirements
are shown in years of credits.
RETIREMENT OR OLD-AGE BENEFITS
**UNITED STATES** **KOREA**
Worker--Full benefit at full Worker--Full benefit at full
retirement age. Reduced retirement age (age 60 for people
benefit as early as age 62. born before 1953; increases
Required work credits range gradually to 65 for people born
from one and one-half to 10 in 1968 or later).
years (10 years if age 62 in
1991 or later). At least 20 years of coverage
required.
Reduced benefit as early as
age 60 with at least 10 years
of coverage.
Early benefit at age 55-59
with at least 10 years of
coverage and not employed.
Benefit for miners and
fishermen at age 55. The
age increases gradually from
2013 until it reaches 60 in
2033. At least 3/5 of Korean
coverage must be as a miner
working underground or a
fisherman working aboard a
ship or boat.
DISABILITY BENEFITS
**UNITED STATES** **KOREA**
Worker--Under full retirement Worker--Benefit payable if
age can get benefit if unable fully or partially disabled.
to do any substantial gainful Must be working in covered
work for at least a year. One employment at onset of dis-
and one-half to 10 years credit ability. Benefit paid as
needed, depending on age at pension or lump sum depending
date of onset. Some recent upon degree of disability.
work credits also needed unless
worker is blind.
FAMILY BENEFITS TO DEPENDENTS OF RETIRED OR DISABLED PERSONS
**UNITED STATES **KOREA**
Spouse--Full benefit at full Spouse--No provision.
retirement age or at any age However, supplement payable
if caring for worker's entitled to worker for dependent spouse
child under age 16 (or disabled of any age unless the spouse
before age 22). Reduced benefit is already receiving another
as early as age 62 if not type of pension.
caring for a child.
Divorced Spouse--Full benefit Divorced Spouse--Divorced
at full retirement age. spouse at least age 60 receives
Reduced benefit as early as a divided portion of the worker's
age 62. Must have been married pension corresponding to the
to worker for at least 10 years. duration of marriage. Must have
been married to worker for at
least five years.
Children--Up to age 18 (age 19 Children--No provision.
if in an elementary or secondary However, supplement payable
school full time) or any age to worker for dependent child
if disabled before age 22. under age 18 or severely
disabled.
Parent--Benefit payable to Parent--No provision.
dependent parent at least However, supplement payable
age 62. to worker for dependent parent
(including the spouse's parent)
at least age 60 or severely
disabled.
SURVIVOR BENEFITS
**UNITED STATES** **KOREA**
Survivor benefits payable to Survivor benefits payable as
the following categories: follows:
Widow or Widower--Full benefit Worker must be covered at
at full retirement age or at any time of death or for at least
age if caring for the deceased's 10 years.
entitled child under age 16
(or disabled before age 22). Survivor must have been
Reduced benefit as early as dependent on worker at time
age 60 (or age 50 if disabled) of death.
if not caring for child.
Benefits may be continued if Only one survivor pension is
remarriage occurs after age 60 paid, in order of priority
(or age 50 if disabled). listed below. If two or more
survivors have the same
Divorced Widow or Widower-- priority rank, the pension is
Same as widow or widower if divided equally among them.
marriage lasted at least
10 years. 1. Spouse (a husband must be
over age 60 or severely
Children--Same as children disabled)
of retired or disabled 2. Children under age 18 or
worker. severely disabled
3. Parents (including the
spouse's parents) over
age 60 or severely disabled
4. Grandchildren under age 18
or severely disabled
5. Grandparents (including the
spouse's grandparents) over
age 60 or severely disabled
Lump-Sum Death Benefit--A Lump-Sum Death Benefit--A
one-time payment not to exceed one-time payment to dependent
$255 payable on the death of of deceased worker. Payable if
an insured worker. no survivor is eligible for
benefits or lump-sum refund of
contributions.
LUMP-SUM REFUND OF CONTRIBUTIONS
**UNITED STATES** **KOREA**
No refund of properly paid Worker--Less than 10 years
contributions. coverage and attains age 60
or loses Korean nationality
or permanently emigrates from
Korea.
Survivor--May receive a refund
of worker's contributions if
no entitlement to survivors
pension.
IV.A. HOW BENEFITS CAN BE PAID
If you have Social Security credits in both the U.S. and
Korea, you may be eligible for benefits from one or both
countries. If you meet all the basic requirements under one
country's system, you will get a regular benefit from that
country. If you don't meet the basic requirements, the
agreement may help you qualify for a benefit as explained
below.
IV.A.1. Benefits from the U.S.
If you don't have enough work credits under the U.S. system to
qualify for regular benefits, you may be able to qualify for a
partial benefit from the U.S. based on both U.S. and Korean
credits. However, to be eligible to have your Korean credits
counted, you must have earned at least six credits (generally
one and one-half years of work) under the U.S. system. If you
already have enough credits under the U.S. system to qualify
for a benefit, the U.S. cannot count your Korean credits.
IV.A.2. Benefits from Korea
Social Security credits from both countries can also be counted,
when necessary, to meet the eligibility requirements for
Korean benefits. To be eligible to have your U.S. and
Korean credits counted, you must have at least 18 months of
coverage credited under the Korean system.
IV.B. HOW CREDITS GET COUNTED
There is nothing you need to do to have your credits in one
country counted by the other country. If we need to count your
credits under the Korean system to help you qualify for a
U.S. benefit, we will obtain a copy of your Korean record
directly from Korea when you apply for benefits. If Korea
needs to count your U.S. credits to help you qualify for a
Korean benefit, they will obtain a copy of your U.S. record
directly from the Social Security Administration when you apply
for the Korean benefit.
Although each country may count your credits in the other
country, your credits are not actually transferred from one
country to the other. They remain on your record in the country
where you earned them and can also be used to qualify for
benefits there.
IV.C. COMPUTATION OF U.S. BENEFIT UNDER THE AGREEMENT
When a U.S. benefit becomes payable as a result of counting
both U.S. and Korean Social Security credits, an initial
benefit is determined based on your U.S. earnings as if your
entire career had been completed under the U.S. system. This
initial benefit is then reduced to reflect the fact that Korean
credits helped to make the benefit payable. The amount of the
reduction will depend on the amount of U.S. credits: the more
U.S. credits, the smaller the reduction; and the fewer U.S
credits, the larger the reduction.
IV.D. A KOREAN PENSION MAY AFFECT YOUR U.S. BENEFIT
If you qualify for Social Security benefits from both the U.S.
and Korea and neither benefit is based on the agreement, the
amount of your U.S. benefit may be reduced. This is a result
of a provision in U.S. law which can affect the way your
benefit is figured if you also receive a pension based on
work which was not covered by U.S. Social Security. For more
information, call our toll-free number 1-800-772-1213 and ask
for the factsheet, "A Pension From Work Not Covered By Social
Security," (Publication No. 05-10045). If you are outside
the United States, you may write to us at the address in
Part V of this document.
IV.E. CLAIMS FOR BENEFITS
If you live in the United States and wish to apply for U.S.
or Korean benefits:
o visit or write any U.S. Social Security office, or
o phone our toll-free number, 1-800-772-1213, 7 a.m. to 7 p.m.
(U.S. Eastern time) any business day. People who are deaf
or hard of hearing may call our toll-free TTY number,
1-800-325-0778.
You can apply for Korean benefits at any U.S. Social Security
office by completing an application form KOR-USA 1.
If you live in Korea and wish to apply for U.S. or Korean
benefits, contact:
o the U.S. Embassy in Seoul to file for U.S. benefits, or
o any Korean Social Security office to file for Korean
benefits.
You can apply with one country and ask to have your application
considered as a claim for benefits from the other country.
Information from your application will then be sent to the other
country. Each country will process the claim under its own laws--
counting credits from the other country when appropriate--and
notify you of its decision.
If you haven't applied for benefits before, you may need to
provide certain information and documents when you apply. These
include the worker's U.S. and Korean Social Security numbers,
proof of age for all claimants, evidence of the worker's U.S.
earnings in the past 24 months, and information about the
worker's coverage under the Korean system. You may wish to
call the Social Security office before you go there to see if
any other information is needed.
IV.F. PAYMENT OF BENEFITS
Each country pays its own benefits. U.S. payments are made by
the U.S. Department of Treasury each month and cover benefits
for the preceding month. Payments under the Korean system are
made at the end of the month and also cover benefits for the
preceding month.
IV.G. ABSENCE FROM U.S. TERRITORY
Normally, persons who are not U.S. citizens may receive U.S.
Social Security benefits while outside the U.S. only if they
meet certain requirements. Under the agreement, however, you
may receive benefits as long as you reside in Korea regardless
of your nationality. If you are not a U.S. or Korean citizen
and live in another country, you may not be able to receive
benefits. The restrictions on U.S. benefits are explained in the
booklet, "Social Security--Your Payments While You Are Outside
the United States" (Publication No. 05-10137).
IV.H. APPEALS
If you disagree with the decision made on your claim for
benefits under the agreement, contact any U.S. or Korean Social
Security office. The people there can tell you what you need
to do to appeal the decision.
The Korean Social Security authorities will review your
appeal if it affects your rights under the Korean system,
while U.S. Social Security authorities will review your appeal
if it affects your rights under the U.S. system. Since each
country's decisions are made independently of the other, a
decision by one country on a particular issue may not always
conform with the decision made by the other country on the same
issue.
**PART V--FOR MORE INFORMATION**
To file a claim for U.S. or Korean benefits under the
agreement, follow the instructions in Part IV.E.
To find out more about U.S. Social Security benefits or for
information about a claim for benefits, contact any U.S. Social
Security office. If you live outside the U.S., write to:
Social Security Administration
OIO--Totalization
P.O. Box 17049
Baltimore, Maryland 21235-7049
U.S.A.
For more information about Korea's Social Security programs,
write to:
National Pension Corporation
Kukmin-yeonkum Building
7-16 Shincheon-dong, Songpa-gu
Seoul 138-725
KOREA
If you don't wish to file a claim for benefits but would like
more information about the agreement, write to:
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, Maryland 21235-7741
U.S.A.
Please include your U.S. Social Security number whenever you
write to the U.S. Social Security Administration.
INTERNET
The Social Security Administration makes information about
the programs it administers available through the Internet.
If you have Internet access, you can obtain information about
U.S. Social Security agreements, as well as other useful
information about Social Security, by visiting SSA's website,
Social Security Online. The address is www.ssa.gov
**PART VI--A SPECIAL MESSAGE TO PEOPLE WHO REQUEST A CERTIFICATE
OF COVERAGE**
VI.A. Privacy Act
The Privacy Act requires us to notify you that we are authorized
to collect this information by section 233 of the Social Security
Act. While it is not mandatory for you to furnish the information
to the Social Security Administration (SSA), a certificate of
coverage cannot be issued unless a request has been received.
The information is needed to enable SSA to determine if work
should be covered only under the U.S. Social Security system in
accordance with an international agreement. Without the certificate,
work may be subject to foreign Social Security coverage and
taxation.
VI.B. Paperwork Reduction Act Notice
The Paperwork Reduction Act of 1995 requires us to notify you
that this information collection is in accordance with the
clearance requirements of section 3507 of the Paperwork Reduction
Act of 1995. We may not conduct or sponsor, and you are not
required to respond to, a collection of information unless it
displays a valid OMB control number. We estimate that it will
take you about 30 minutes to read the instructions, gather the
necessary facts and write down the information to request a
certificate of coverage.