The government will initiate social discussions to create conditions that allow the elderly to work longer. The plan is to support the reemployment and skill development of the elderly and strengthen the employment safety net to encourage them to remain in the labor market for a longer period. To this end, the government will form a discussion body within the Economic, Social and Labor Council to improve the system and prepare a 'Continued Employment Roadmap' by the end of this year.
On the 27th, the Ministry of Employment and Labor held the first Employment Policy Deliberation Committee meeting of the year, chaired by Minister Lee Jeong-sik, and deliberated and approved the 'Elderly Employment Strategy' containing these details. South Korea is expected to enter a super-aged society in 2025, with those aged 65 and over accounting for 20.6% of the population. Compared to major countries such as Japan and the United States, the aging speed is very rapid. With the youth population rapidly decreasing, it is expected that by 2030, one in four people will be aged 65 or older.
As the youth population inevitably decreases due to aging, labor shortages in industrial sites are also expected to worsen. According to the Ministry of Employment and Labor, the employment rate of those aged 65 and over was 34.9% in 2021, the highest among OECD member countries. This is because the elderly need to engage in economic activities as it is difficult to live on pension income alone. However, the employment rate for those aged 55-64 is 66.3%, higher than the OECD average (61.4%) but lower than Japan (76.9%) and Germany (71.8%). The Ministry explained, "Considering the rapid aging speed in South Korea, it is necessary to actively utilize those aged 55-64 as key human resources."
Accordingly, the government has decided to improve the system so that the elderly can work longer. First, it will begin full-scale social discussions on continued employment. In consultation with labor and management, a discussion body will be formed within the Economic, Social and Labor Council in the first quarter, and discussions will start from the second quarter. Topics will include methods and timing of continued employment, grounds for wage and job adjustments, and support measures for companies and workers. Through this, a 'Continued Employment Roadmap' will be prepared by the end of this year.
The reform of the wage system, essential for continued employment of the elderly, will also be expedited. A Win-Win Wage Committee will be established to discuss institutional support measures such as differentiated government support for companies that reorganize their wage systems based on job and performance. An 'Integrated Wage Information System' providing market wage information will also be built to support companies in establishing fair compensation systems.
To encourage companies to voluntarily introduce continued employment systems, the number of recipients of continued employment incentives will be significantly increased from 3,000 last year to 8,300 this year. Excellent cases of companies that have introduced continued employment will be disseminated, and a reward system for companies excelling in elderly employment will be established. A 'Dedicated Window for Middle-aged and Older Workers' will be set up within employment centers to provide customized employment programs tailored to visit types. Additionally, vocational training will be improved to better meet the demand of middle-aged and older workers, encouraging greater participation in training courses.
Furthermore, based on social discussions related to continued employment, the government will review the application of unemployment benefits for new workers aged 65 and over. To strengthen the old-age income security system, a revision bill of the 'Workers' Retirement Benefit Guarantee Act,' including phased mandatory introduction of retirement pensions and enhancement of pension benefits, will be submitted to the National Assembly in the second half of this year. Minister Lee emphasized, "In response to population decline, we will promote the labor market entry of potential labor forces such as youth, women, and the elderly as core policy targets."
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