Labor minister voices need to pass bill to raise retirement age by year-end
Labor Minister Kim Young-hoon speaks during “Key Labor Inspection Policy Briefing" event held at the Government Sejong Convention Center, Thursday. Yonhap
Labor Minister Kim Young-hoon called for legislative efforts Thursday to raise the statutory age of retirement by the end of this year, while emphasizing that both companies and labor groups should reach a compromise amid the nation's rapidly aging population.
Speaking to reporters at the government complex in the central city of Sejong, Kim emphasized that extending the retirement age is "a path that must be taken," while acknowledging challenges in narrowing differences between the two sides.
"Raising the legal retirement age could lead to clashes when it comes to jobs at large companies and public institutions, which are strongly favored by the youth," he said. "If the retirement age is extended in these areas, companies will have no choice but to cut back on hiring the youth, so we need to find a middle ground where both generations can coexist."
Labor groups have been pushing for the legislation to be passed within this year, citing the rapidly aging population and financial burden on retirees during the five-year gap before national pension benefits begin at 65.
Business groups, however, warn that raising the retirement age without sufficient discussions or support measures could risk shrinking investment and job opportunities for the youth, and have proposed alternatives, including reemployment after retirement.
When asked if he still believes the legislation should be passed by the year-end, Kim said his stance remains unchanged.
"I believe the government's role is to bridge the differences between the labor and management as much as possible to help reach an agreement," he added, noting that the government currently has no plans to come up with its own proposal.
In 2016, Korea extended the legal retirement age of its workers to 60. Previously, the retirement age of 60 was only a recommendation.