[Retirement Age Extension, Time to Decide] Kim Jooyoung: "Mandatory Employment of Older Workers for State-Subsidized Employers"

Kim Jooyoung, a member of the Democratic Party of Korea and the secretary of the 'Retirement Age Extension Task Force (TF),' emphasized that the issue of extending the retirement age is "no longer a matter of choice, but an essential task." He stressed the need for practical institutional reforms to prepare for a super-aged society. In particular, he highlighted that public institutions should take the lead, emphasizing the importance of the public sector setting an example.

In a recent interview with Asia Economy at the National Assembly Members' Office Building in Yeouido, Seoul, Kim stated, "Among OECD countries, Korea has the highest elderly poverty rate, and as of last year, the population aged 65 and over surpassed 20% of the total, marking our entry into a super-aged society." He added, "Extending the retirement age is an urgent task, both to ensure the economic stability of older adults and to help companies secure skilled workers."

The Democratic Party's Retirement Age Extension TF includes representatives from both major labor organizations, such as the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, as well as business groups like the Korea Employers Federation and the Korea Federation of SMEs, and youth organizations such as Youth Union. Kim previously served as the chairman of the Federation of Korean Trade Unions. He emphasized the need to extend the retirement age, noting, "While the age for receiving the national pension has been raised to 65, the statutory retirement age remains at 60, resulting in at least a five-year income gap after retirement."

Kim Jooyoung, a member of the Democratic Party of Korea and the secretary of the 'Retirement Age Extension Task Force (TF),' is being interviewed by Asia Economy on the necessity of extending the retirement age at the National Assembly Members' Office Building on the 9th. (Photo by Kim Jooyoung)

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Kim particularly pointed out that the sharp decline in the working-age population and labor shortages could lower the country's potential economic growth rate, and that extending the retirement age is not just a welfare policy but a structural solution for economic sustainability. He also acknowledged the need to consider concerns that extending the retirement age could negatively impact youth employment. He said, "Last month, the TF held a discussion with about 20 young people to gather their concerns and suggestions," adding, "They expressed deep worries about the livelihood of their parents' generation and their own job insecurity."

Regarding concerns that extending the retirement age could increase the burden on companies, he said, "If the seniority-based wage system remains unchanged while the retirement age is extended, it could indeed be a burden for companies." He pointed out the need for a social consensus, including wage system reforms such as the wage peak system or more flexible employment practices.

Kim Jooyoung, a member of the Democratic Party of Korea and the secretary of the 'Retirement Age Extension Task Force (TF),' is being interviewed by Asia Economy on the necessity of extending the retirement age at the National Assembly Members' Office Building on the 9th. (Photo by Kim Jooyoung)

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For the concrete implementation of the retirement age extension legislation, Kim proposed both a "phased implementation" and the introduction of an "obligation for state-subsidized employers to hire older workers." He explained, "Even if the retirement age is legally extended, the system will be ineffective if jobs are not actually provided to older adults. Therefore, state-subsidized organizations that receive public funds should be required to take the lead in hiring older workers." This reflects the idea that the public sector should play a leading role to ensure a smooth transition for the retirement age extension system.

Regarding the "4.5-day workweek" and even the "4-day workweek" proposed by Democratic Party presidential candidate Lee Jaemyung, Kim stated, "The 4-day workweek is no longer a distant future, as it is a way to reduce long working hours and increase productivity." However, he also noted, "A gradual introduction that considers both the realities of companies and the quality of life for workers is necessary, and a pilot program starting in the public sector is a feasible approach."

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