Korea to Raise Retirement Age to 65 as 29-and-Under Employment Falls for 48th Month
Updated
Updated · 코리아타임스 · Sep 9
Korea to Raise Retirement Age to 65 as 29-and-Under Employment Falls for 48th Month
3 articles · Updated · 코리아타임스 · Sep 9
Summary
Later this year, Seoul plans to submit legislation to gradually lift the statutory retirement age from 60 to 65 while rolling out measures to support youth hiring.
10.13 million Koreans aged 55 to 79 were employed in May, and workers 60 and older accounted for about 207,000 of August’s year-on-year rise in employment insurance coverage as pensions averaged just 880,000 won a month.
56,000 fewer workers aged 29 and younger were employed in August, extending a 48-month decline and sharpening concern that keeping older staff longer could further squeeze entry-level openings.
The Bank of Korea found that from 2016 to 2024, each additional older worker was associated with 0.4 to 1.5 fewer younger workers, especially at unionized firms and large companies.
Officials and experts say any retirement-age increase needs wage-system reform, more flexible hiring and possible post-retirement rehiring—particularly in large firms and the public sector, which make up about 20% of jobs.