RETIREMENT AGE EXTENSIONS

[Anchor Lead]

Korea’s population began to shrink drastically last year as a result of and aged society. To reduce the shock, working-age population must be maintained. Increasing women’s participation in economy and hiring more foreign workers are among the solutions. However, discussion of the retirement age extension has yet to begin.

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One of the employees at this firm is over 60 years old. Companies that hire workers who are past their retirement age can receive state subsidies to pay the workers’ salary.

[Soundbite] (Employee, 61) : "I am proud to be able to work even after my retirement age. Most of my friends are unemployed now."

Some are calling for a new legislation on the extension of the retirement age. The nation’s working-age population currently stands at some 37 million. But 20 years from now it’s predicted to shrink to 28 million. If that happens, society will stop growing, while the burden of caring for the elderly will become heavier. With Korea’s population already dwindling naturally, extending the retirement age could be a viable solution. However, not everyone is happy about the idea, especially businesses and young people. In Korea, the longer you work, the more you get paid. If the retirement age is extended, businesses will have to shoulder higher labor costs, while young people will have fewer jobs available. In the automotive sector, labor unions led mostly by older workers are demanding that the retirement age be extended, whereas the MZ generation is against that. The government appears to be backing off on this issue because of the social conflict. It just reiterates that a social agreement is needed.

[Soundbite] Cho Young-tae(Seoul National University) : "In Japan it’s extremely difficult to find young workers these days. It’s going to happen in Korea, too, in 2027-2028."

The government is soon to announce the results of discussions of the 3rd taskforce on population issues. Some point out that rather than trying to avoid conflicts, it's time to either extend the retirement age or come up with another way to maintain economic growth.