Need for Solutions to Address Issues Arising from Rapid Transition to a Super-Aged Society
The Korea Development Institute (KDI), a national policy research institute, held a joint symposium with the Bank of Korea on May 15 in the KDI main conference room in Sejong City under the theme "Poverty and Labor in a Super-Aged Society: Asking for Policy Directions."
The symposium was organized to assess the current state of elderly poverty and the labor market for older adults as Korea enters a super-aged society, and to explore effective policy directions in response.
In February, elderly people lined up in front of the free senior meal service at Wongaksa Temple in Tapgol Park, Jongno-gu, Seoul, waiting for lunch. Photo by Yonhap News
In his opening remarks, KDI President Cho Dongchul pointed out that the rapid transition to a super-aged society is raising fundamental issues across all sectors of society.
President Cho stated, "Regarding elderly poverty, it would be reasonable to shift the income criteria of the current basic pension system to a comparison with the national median income," and added, "For continued employment among older adults, measures to ease early retirement structures, such as reemployment after retirement, should be prioritized. However, extending the statutory retirement age should be pursued gradually in connection with resolving the dual structure of the labor market."
In Session 1, titled "Policy Directions for Alleviating Elderly Poverty," KDI research fellow Lee Seunghee, as a presenter, pointed out that although the elderly poverty rate in Korea has been declining in recent years, it still remains the highest among OECD countries. She also noted that even when assets are converted into income for evaluation, elderly poverty remains a serious issue.
She further argued that elderly poverty is characterized by significant differences in poverty rates between birth cohorts within the older population, mainly due to the high poverty rate among those born before 1950. She proposed that the eligibility criteria for the basic pension should be converted to a certain percentage of the national median income, in order to provide stronger support for the most impoverished elderly.
In Session 2, titled "Measures to Respond to Aging," KDI research fellow Han Yosep, as a presenter, pointed out that while population aging due to increased life expectancy in a super-aged society offers new economic opportunities, the traditional structure of workforce utilization in the elderly labor market still persists.
He also emphasized the need to enhance both wage flexibility and employment stability, for example by reforming the seniority-based wage system and promoting job security for long-term employees, in order to better utilize the new elderly workforce.
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