Delinquent amount surges 21.4% in two years

Long-term arrears alone reach 12.9 billion won, accounting for 40.3% of total

94.4% of delinquent workplaces employ fewer than five workers

Yeonsu-gu arrears jump 58.3% in two years

Unpaid national pension premiums at Incheon workplaces hit a low in 2024 but have since resumed their climb. [AI-generated image]
Unpaid national pension premiums at Incheon workplaces hit a low in 2024 but have since resumed their climb. [AI-generated image]

Unpaid national pension premiums at Incheon workplaces have surpassed 31.94 billion won ($23.7 million), with the share of businesses delinquent for more than three years exceeding the national average, according to data released Friday.

As arrears grow again and the number of workplaces unable to pay premiums over extended periods rises, experts say urgent measures are needed to address the financial difficulties facing small businesses and to protect workers' pension entitlements.

Data submitted to Democratic Party of Korea lawmaker Heo Jong-sik of the National Assembly's Health and Welfare Committee by the National Health Insurance Service show that as of July this year, 2,856 Incheon workplaces had accumulated unpaid national pension premiums totaling 31.94 billion won. The figures cover active workplaces that have been delinquent for six months or more.

Incheon's arrears have risen sharply since 2024. After falling to 26.32 billion won in 2024, the total climbed to 30.1 billion won in 2025 and reached 31.94 billion won as of July this year — a 21.4% increase, or 5.62 billion won, from 2024. The number of delinquent workplaces also grew by 12.7%, or 321 businesses, over the same period.

The national delinquency rate rose 12.0% during the same period, meaning Incheon's pace of increase was roughly 1.8 times the national average.

The average amount owed per workplace also rose, from about 10.38 million won in 2024 to about 11.18 million won as of July this year, indicating that individual workplaces are carrying a heavier unpaid burden.

A particularly troubling trend is the growing proportion of chronic delinquencies. As of July this year, 529 Incheon workplaces had gone without paying premiums for 37 months or more, accounting for 18.5% of all delinquent workplaces — up 7.4 percentage points from 416 workplaces, or 11.1%, in 2021.

The situation looks even more serious against national figures. Nationwide, the share of workplaces with arrears of 37 months or more rose from 11.7% in 2021 to 15.1% as of July this year. Incheon, which had been below the national average in 2021, now exceeds it by 3.4 percentage points.

Long-term delinquency is also concentrating the unpaid burden. Incheon workplaces with arrears of 37 months or more owed 12.88 billion won in unpaid premiums — 40.3% of the city's total arrears, up from 27.5% in 2021, a rise of 12.8 percentage points over five years.

The average amount owed by a chronically delinquent workplace stood at about 24.34 million won, roughly five times the average of about 4.88 million won for workplaces delinquent for six to 12 months.

Among Incheon's top 10 delinquent workplaces, one had gone 53 months without paying, accumulating 308 million won in arrears. Another had been delinquent for 72 months, owing 195 million won.

The problem is concentrated among small businesses. As of July this year, workplaces with fewer than five employees numbered 2,697, making up 94.4% of all delinquent workplaces. Their combined arrears reached 27.49 billion won, or 86.1% of the total, suggesting that deteriorating business conditions at small workplaces are driving the failure to pay pension premiums.

A significant number of workplaces have also been closed out of the collection process after premiums proved unrecoverable. The number of such cases peaked at 1,839 in 2024, up from 1,232 in 2021, with outstanding arrears of 12.68 billion won at that point. By 2025, the figure had fallen to 1,388 workplaces with 11.72 billion won in arrears, though the total still exceeded 10 billion won.

However, because the criteria for closing a case were expanded from 2023, it is difficult to draw firm conclusions about changes in collection conditions from the numbers alone.

By district, Seo-gu had the largest arrears as of the end of 2025, before the city's administrative restructuring. Seo-gu recorded 659 delinquent workplaces and 8.48 billion won in unpaid premiums, accounting for 24.8% and 28.2% of Incheon's respective totals.

Yeonsu-gu followed with 418 workplaces and 5.14 billion won in arrears, while Namdong-gu recorded 376 workplaces and 4.7 billion won.

Yeonsu-gu stood out for the pace of its increase. Its arrears reached 6.28 billion won as of July this year, up 58.3% from 3.97 billion won in 2024, and the number of delinquent workplaces rose to 540, underscoring the need for a closer examination of delinquency conditions by district.

"Before arrears harden into long-term delinquencies of 37 months or more, business owners should be actively informed about installment payment options and support, while workers at those businesses should be transparently notified of any unpaid premiums and their enrollment records," said Heo, who represents Incheon's Dong-gu and Michuhol-gu A constituency.

He added that the government should "put in place a preemptive safety net for small business owners before they are forced to shut down, and move quickly to establish national-level protections so that an employer's failure to pay premiums does not disadvantage diligent workers' pension enrollment records or benefit entitlements."


gilbert@heraldcorp.com