110 billion in unclaimed pensions, government and financial firms campaign to find them

With unclaimed retirement pension funds exceeding 110 billion KRW, the government and financial institutions are participating in a campaign to help individuals locate their unclaimed retirement pensions.

As of the end of last year, unclaimed retirement pensions for employees of closed businesses amounted to 110.6 billion KRW. This unclaimed amount involves 68,324 individuals across 21,330 businesses.

The amount of unclaimed retirement pension funds has been steadily increasing, surpassing 120 billion KRW at the end of both 2021 and 2022.

As of the end of last year, 97.4% of the unclaimed funds, totaling 107.7 billion KRW, were held in banks. Securities companies and insurance companies held 1.5% (1.6 billion KRW) and 1.1% (1.2 billion KRW) of the funds, respectively.

The primary reasons for unclaimed retirement pensions include employees being unaware of their enrollment in retirement pension plans and companies going bankrupt or closing down. Additionally, even after retirement, individuals can claim their retirement pensions directly from the financial institutions they are enrolled with, but many are unaware of this or do not know the process, leading to unclaimed funds.

The Ministry of Labor, the Financial Services Commission, the Financial Supervisory Service, and financial companies plan to establish a new inquiry service and enhance guidance to help individuals find their unclaimed retirement pensions.