Launch of the Research Group on Continued Employment in Super-Aged Society on the 27th
Priority to Prepare Employment and Wage Reform Plans Mainly by Academia
No Measures for the Super-Aged Society in 2025
"Regret over Labor Sector's Absence, Labor Reform Is a National Issue"
The Economic and Social Labor Council, which has been repeatedly disrupted due to the labor sector's absence, is gathering experts to create employment and wage reform plans in preparation for a super-aged society. The rapid aging makes the discussion urgent, and they cannot simply wait for the labor sector's participation. The strategy appears to be to first develop a separate plan mainly with academia and later present it to labor and management for implementation.
On the 27th, the Economic and Social Labor Council launched the ‘Super-Aged Society Continued Employment Research Group’ and held its first meeting. The research group is co-chaired by Professor Lee Young-myeon of Dongguk University and Kim Deok-ho, a standing member of the Economic and Social Labor Council. The members include eight experts from academia specializing in labor markets, labor law, and social welfare, as well as three officials from the Ministry of Economy and Finance, Ministry of Employment and Labor, and Ministry of Health and Welfare.
On the 8th of last month, the day after the Korean Federation of Trade Unions declared its withdrawal from the Tripartite Commission, Chairman Kim Dong-myeong is speaking in front of the Presidential Office in Yongsan-gu, Seoul. [Image source=Yonhap News]
The research group's goal is to ‘develop employment and wage system measures in preparation for a super-aged society.’ The first agenda items include continued employment for the elderly, smooth reemployment, and vocational training. In particular, the issue of continued employment will be discussed in connection with the reform of the wage system. This follows the government's direct request to the Economic and Social Labor Council earlier this year to address the issue of continued employment in preparation for a super-aged society.
Originally, the Economic and Social Labor Council planned to create a discussion body involving labor, management, and government, but it shifted direction to a research group centered on academia. The Korean Confederation of Trade Unions (KCTU) suspended its participation in the Economic and Social Labor Council on the 7th of last month, citing excessive suppression of Kim Jun-young, the secretary-general of the Metal Workers' Union. This absence declaration after 7 years and 5 months has prevented the council from discussing major agendas. The council explained, “Since social discussions have become difficult, we first launched a research group centered on experts to start discussions.”
The severity of the aging speed also influenced the launch of the research group. According to Statistics Korea, South Korea entered an aged society in 2018 and is expected to enter a super-aged society by 2025, seven years later. In the short term, there are concerns about labor shortages due to a decrease in the working-age population, and in the mid-to-long term, worries about declining potential growth rates and increasing elderly dependency ratios. There are also warnings that generational conflicts may intensify as welfare issues such as pensions and social security costs overlap.
The members unanimously agreed that measures must be devised to efficiently utilize the rapidly increasing elderly population in the labor market. Professor Lee said, “Rapid aging negatively affects labor shortages, the burden of elderly support on future generations, and national finances,” adding, “It is more necessary than ever for academia and related experts to engage in in-depth discussions to develop relevant measures so that the elderly can leverage their knowledge and experience to become core personnel in the labor market.”
Voices urging labor sector participation also emerged. Standing member Kim stated, “It is regrettable that the labor sector has suspended participation in the Economic and Social Labor Council,” and added, “The council will continue to persuade the parties involved to enable ongoing social discussions.” He emphasized, “Preparing for a super-aged society and reforming the outdated labor market legal system are extremely urgent and critical national issues.”
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