The Ministry of Employment and Labor and the Office for Government Policy Coordination have agreed to a recommendation by the National Human Rights Commission to raise the legal retirement age in South Korea from 60 to 65.
The National Human Rights Commission of Korea (NHRC) has proposed raising the legal retirement age from 60 to 65, and both the Ministry of Employment and Labor and the Office for Government Policy Coordination have expressed their willingness to accept this recommendation. During a meeting of the NHRC's Standing Committee, it was confirmed that the concerned agencies would formally announce their acceptance of the recommendation aimed at reducing age discrimination in employment and promoting the hiring of elderly individuals. This initiative highlights the government's commitment to addressing the challenges posed by an aging population while also acknowledging the importance of easing the burden on businesses and creating policies for intergenerational coexistence.
The NHRC has previously emphasized the need to ensure that there are no income gaps for individuals between the legal retirement age and the age at which they can start receiving pensions. As Korea transitions into a super-aged society by 2025, where individuals over 65 will constitute over 20% of the total population, the extension of retirement age is seen as critical. The NHRC has also advised the government to consider measures that would prevent negative impacts on youth employment opportunities, such as implementing a wage peak system and providing various supports to companies, including tax breaks and financial assistance.
During the committee meeting, members discussed the implications of extending the retirement age, focusing on how it might affect workers born in 1967 and 1968, who could be particularly affected by the changes. They suggested the need for mechanisms to guarantee continued employment for retirees, given the restrictive nature of current reemployment programs and incentives under the Employment Promotion Act. Overall, the acceptance of the recommendation marks a significant step in responding to demographic changes in South Korea and aims to ensure a balance between supporting older workers and creating job opportunities for the younger generation.
