Oh Se-hoon "Considering Introduction of Continuous Employment System and Expansion of Corporate Incentives"

"Addressing the Income Gap Among the Middle-Aged and Older Adults"

Seoul Mayor Oh Se-hoon announced that he will consider introducing a continuous employment system and expanding corporate incentives as solutions to the income gap faced by middle-aged and older adults.

On the 12th, Mayor Oh mentioned the issue of income gaps among the middle-aged population on Facebook, stating, "We will actively review the introduction of a 'continuous employment system' and the expansion of 'corporate incentives' through the 'Seoul4064+Jobs (tentative name)' package proposed by the Seoul Institute."

Mayor Oh diagnosed, "The average 13-year income gap, from retirement more than 10 years earlier than the mandatory retirement age (60) to pension receipt (63), places a heavy burden on individuals and society. However, job policies so far have focused on the youth and the elderly, leaving the middle-aged population marginalized in between."

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He also emphasized the need for 'middle-aged employment policies' including those in their 40s. He said, "Considering the population aged 40 to 64, which amounts to 20.15 million nationwide and 3.65 million in Seoul, supporting their continuous economic activity is an essential task."

As a solution, Mayor Oh proposed a continuous employment system that supports workers to continue working at their companies even after retirement age. The plan also includes providing incentives to companies that adopt the continuous employment system. Mayor Oh explained, "Companies feel pressure from costs, and especially small and medium-sized enterprises find it difficult to actively participate due to labor cost burdens. Therefore, Seoul City will provide incentives such as continuous employment subsidies and middle-aged recruitment subsidies to help companies maintain employment of middle-aged workers, and will also consider introducing flexible and selective employment methods such as customized part-time and project-based contracts."

He added, "In the mid to long term, a fundamental solution is needed for mutual growth between the middle-aged population and companies by shifting from seniority-based pay to job- and performance-based pay." The city is also researching ways to link social contribution, public, career transition, and private sector jobs through the expansion of the existing middle-aged job training program 'Seoul Run 4050' into the 'Seoul4064+Jobs (tentative name)' package.

Mayor Oh emphasized, "Supporting the middle-aged population to continue economic activities stably until old age without income gaps is not only about protecting individual lives but also about enhancing corporate competitiveness and is an essential strategy for the sustainable growth of the Korean economy."

This content was produced with the assistance of AI translation services.