Discussion on 'Retirement Age Extension' for SMEs... 2nd Labor Workforce Committee Meeting Held

Composed of Experts from SMEs by Industry Representatives and Academia
Reviewing Key Issues Such as the Medium-Sized Enterprise Act and Minimum Wage

The Korea Federation of Small and Medium Business (Kbiz) announced on the 21st that it held the "2nd Labor and Workforce Committee Meeting of 2024" at the Kbiz headquarters in Yeouido, Seoul.

Kim Ki-moon, President of the Korea Federation of Small and Medium Business
Photo by Yonhap News

The Labor and Workforce Committee, composed of representatives from various small and medium enterprise (SME) sectors, academia, and research experts, is a consultative body aimed at reviewing labor issues faced by SMEs and coordinating joint responses.

At the meeting, attended by about 10 committee members including Chairman Lee Jae-kwang, discussions were held regarding continued employment, including the extension of the retirement age. Ahn Jun-gi, Associate Research Fellow at the Korea Employment Information Service, who presented on the topic "Labor Market Aging and the Reality of Continued Employment," emphasized, "The changes in employment rates in South Korea, which is approaching a super-aged society, are being driven mainly by those in their 50s and 60s and above," and added, "There is a need for policy considerations on methods of continued employment that can mitigate the impact on SME workplaces." Committee members representing the industry argued, "Rather than a uniform legal extension of the retirement age, companies should be able to choose continued employment methods that suit their different management circumstances."

The committee also reviewed and exchanged opinions on responses to labor issues such as "Trends in Discussions at the Economic, Social and Labor Council," "Serious Accident Punishment Act," "Minimum Wage," "Work-Family Balance," and "Foreign Workforce Policy."

Chairman Lee stated, "To enable workers in the SME sector to remain in the labor market longer, rather than legally mandating the extension of the retirement age, an environment should be created where companies have broader options for utilizing older workers and the burden is reduced, allowing for continued employment."