Sejong: Labor Minister Kim Young-hoon urged legislative action on Thursday to increase the statutory retirement age by the end of the year, highlighting the necessity for companies and labor groups to find common ground amidst South Korea's rapidly aging population. Kim spoke to reporters at the government complex in Sejong, stressing that extending the retirement age is imperative despite the challenges in reconciling the differences between the involved parties.

According to Yonhap News Agency, Kim acknowledged potential conflicts that may arise, particularly concerning jobs at large companies and public institutions, which are highly sought after by younger individuals. He noted that extending the retirement age in these sectors might force companies to reduce hiring among the youth, necessitating a compromise to ensure coexistence between generations.

Labor groups advocate for the prompt passage of the legislation this year, given the aging population and the financial strain on retirees during the five-year gap before national pension benefits commence at age 65. In contrast, business groups caution that raising the retirement age without adequate discussions or support measures could hinder investment and youth employment opportunities. They have suggested alternatives, such as reemployment after retirement.

When questioned about his commitment to passing the legislation by year-end, Kim affirmed that his position remains steadfast. He emphasized the government's role in facilitating dialogue between labor and management to reach an agreement, while also stating that there are currently no plans for the government to propose its own solution.

In 2016, South Korea raised the legal retirement age to 60, transforming what was previously a recommended age into a statutory requirement.