Human Rights Commission to Recommend Legally Extending Retirement Age to 65 to Prime Minister

The National Human Rights Commission of Korea (NHRCK) has decided to recommend to the Prime Minister to raise the statutory retirement age from 60 to 65.

National Human Rights Commission. Yonhap News Agency

According to the NHRCK on the 6th, at the 23rd Standing Committee meeting held the previous day, the commission passed a resolution containing recommendations to raise the statutory retirement age from 60 to 65, as part of the "Recommendation on System Improvement Related to the Extension of the Statutory Retirement Age under the Act on Prohibition of Age Discrimination in Employment and Promotion of Employment for Older Persons."

However, to prevent the extension of the statutory retirement age from negatively affecting youth employment opportunities, the commission also recommended reviewing effective operation measures for the wage peak system that can alleviate the increased labor cost burden on companies due to extended employment of older workers and the wage reduction burden on older employees when the retirement age is extended. The commission further advised the government to prepare active support measures such as tax benefits, financial support, administrative assistance (including permits and approvals), and labor cost subsidies for the relevant companies.

The NHRCK analyzed, "South Korea faces concerns over weakened economic growth potential due to a rapid decline in the working-age population caused by rapid aging, while the healthy life expectancy of the elderly is increasing." It added, "The surge in the elderly population has led to increased social security burdens, causing conflicts between younger and older generations." The commission emphasized, "It is necessary to find improvement measures to overcome the aging crisis and strengthen national competitiveness by maximizing the utilization of elderly human resources." It also stated, "To extend the retirement age while minimizing the reduction of employment opportunities for the youth, active wage support policies for older workers across companies are essential."