Experts in elderly employment policy have identified a "decrease in new hires among the youth" as their greatest concern regarding the proposal to extend the mandatory retirement age to 65. They believe that in order to promote the utilization of older workers, institutional improvements are needed to allow for a variety of employment types, such as easing dispatch regulations.
The Korea Employers Federation announced on July 15 that it had conducted a "Survey and Assessment of Experts on Elderly Employment Policy." The survey received responses from 210 professors in management, economics, and law.
When asked about the negative effects expected if the statutory retirement age is extended to 65, "a decrease in new hires among the youth" was the most common response at 62.4% (multiple responses allowed). This was followed by "inefficiency due to high costs relative to low productivity" at 43.8%, "deterioration of workplace culture due to generational conflict" at 23.8%, and "deepening of the dual labor market structure" at 19.5%.
When asked who should bear the primary responsibility for addressing the issue of elderly income security in response to a super-aged society, 63.8% answered "the government and National Assembly," and 32.9% answered "individual workers." Only 1.9% responded "private companies."
As the top priority for government action to promote the utilization of older workers, "diversification of employment types" received the highest response at 68.1% (multiple responses allowed). Respondents argued that institutional improvements are needed to allow for a variety of employment types, such as easing dispatch regulations. Enhancing employment flexibility through measures such as easing dismissal regulations was cited by 53.3%, and institutional reforms to overhaul the seniority-based wage system were cited by 48.6%.
Lim Youngtae, head of employment and social policy at the Korea Employers Federation, stated, "The majority of experts are concerned that the biggest side effect of extending the statutory retirement age is a decrease in youth employment opportunities. It is necessary to actively review legal and institutional reforms to promote the relaxation of various employment regulations and the restructuring of the wage system, as suggested by experts, in order to create conditions that facilitate the utilization of older workers and to pursue employment policies that enable both young and older generations to participate together."
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