"720 Million KRW Support Over 2 Years for Hiring Over 60s 'Elderly Continued Employment Incentive'... 'It Was Effective'"

78% of 550 Supported Companies and 100 Workers Respond "Helpful for Employment Increase"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced on the 25th that the introduction of the 'Elderly Continued Employment Incentive' system, which provides 7.2 million KRW per person over two years to businesses hiring workers aged 60 and above, has had a positive effect on employment stability.

Implemented since January last year, this system focuses on supporting companies that have abolished retirement age or introduced re-employment systems after retirement. Companies operating a retirement age of 60 or above that extend retirement age, introduce re-employment systems, and continue to employ workers after retirement receive subsidies.

According to the Korea Employment Information Service, a survey of 550 eligible companies and 100 workers showed that 78% responded that it helped increase employment, and 884% said it contributed to employment stability.

Despite adverse conditions such as restructuring due to COVID-19 last year, 367 small and medium-sized enterprises introduced this system to continue employing 690 elderly workers.

An official from the Ministry of Employment and Labor said, "Considering the accelerating aging trend, we plan to support more than 2,000 people this year through this system."

Kim Youngjoong, Director of Employment Policy at the Ministry of Employment and Labor, emphasized, "Japan, which became a super-aged society ahead of us, implemented a mandatory employment securing measure for those aged 65 and above in 2013, and plans to extend the range to 70 years old from April. It is necessary to create conditions where people can work even after retirement."

Director Kim added, "In addition to support to reduce the burden on companies due to extended employment after retirement, we will promote the dissemination of best practices in overall employment management such as workforce management and industrial safety related to elderly employment, and develop models for successful elderly employment."