S.korea In Talks With China Over Social Insurance Payments

South Korea is in talks with China to exempt its nationals from paying social insurance fees while working in the neighboring country, a Seoul official said Tuesday.

The move comes after China introduced a law in October, requiring foreign workers and their employers to pay social insurance fees to the Chinese government in exchange for such benefits as pension provisions, medical insurance and unemployment benefits.

Under the new law, foreign workers pay an average of US$100 per month, while the companies that employ them pay an average of $300 per month.

Most South Korean workers in China, however, do not stay in the country long enough to benefit from the new scheme and are already paying toward pensions in their home country.

"The government is entering into social security agreements with 24 countries, including the U.S., Germany and Australia, in order to lessen the tax burden on our workers overseas," an official at Seoul's foreign ministry said on the condition of anonymity. "We plan to reach a similar deal with China as early as possible."

South Korea has proposed an agreement that will exempt nationals from both sides from paying social insurance fees while working in the other country.

China has responded affirmatively, and a delegation from South Korea's foreign and welfare ministries as well as its National Pension Service will visit China on Thursday to hold working-level talks with their counterparts, the official said.