[2025 Audit] Chairman Kwon Kisub: "If Social Consensus on Retirement Age Extension Is Difficult, a Decisive Action Is Needed"

National Assembly Climate, Energy, Environment and Labor Committee Audit
Ongoing Criticism and Opinions on Retirement Age Extension
"Solutions Needed for Youth Unemployment and Labor Issues"

Kwon Kisub, Chairman of the Economic, Social and Labor Council, stated on the 27th, "While a social consensus is the best approach for extending the retirement age, if that proves difficult, a well-accepted decision will be necessary." He added, "If we can develop solutions regarding issues for youth and future generations, the dual structure of the labor market, and how to ensure the sustainability of the labor market, we may be able to gain significant understanding and acceptance from stakeholders, even if labor-management agreement is not reached."

Chairman Kwon made these remarks at the National Assembly Climate, Energy, Environment and Labor Committee's audit, responding to a question from Assemblyman Kim Hyungdong of the People Power Party, who asked, "Are there any essential considerations for successfully establishing a retirement age extension program?" On this day, the committee conducted a government audit of the Economic, Social and Labor Council, the Central Labor Committee, the Minimum Wage Commission, the Industrial Accident Compensation Insurance Re-examination Committee, and local offices under the Ministry of Employment and Labor.

Kwon Kisub, Chairman of the Economic, Social and Labor Council, is delivering a greeting at the National Assembly Climate, Energy, Environment and Labor Committee hearing on the Economic, Social and Labor Council, Central Labor Committee, and Minimum Wage Commission held on the 27th in Yeouido, Seoul. Photo by Yonhap News Agency

At the session, Chairman Kwon commented, "It would be ideal if we could immediately implement a statutory retirement age extension, but in reality, considering the dual structure of Korea's labor market, youth unemployment, and the wage system, there are practical challenges to directly introducing a legal retirement age extension." Earlier, during the audit, there was criticism of the Economic, Social and Labor Council for presenting a proposal in May regarding retirement age extension that lacked a labor-management agreement.

Regarding calls for the Economic, Social and Labor Council to discuss applying the Labor Standards Act to workplaces with fewer than five employees, Chairman Kwon said, "Labor-management agreements can only be reached once the Council is normalized." He added, "Since the issue is part of the government's agenda and there was a consensus last year to discuss it, I expect that if discussions resume, the Council will address the application of the Labor Standards Act to workplaces with fewer than five employees."

The Ministry of Employment and Labor stated that it would review the possibility of adopting this issue as an agenda item for the Economic, Social and Labor Council. Lee Hyunok, Director-General of Labor Policy at the Ministry, responded to concerns that applying the Labor Standards Act to workplaces with fewer than five employees could create significant challenges for self-employed individuals and small business owners, saying, "We believe a balanced solution can be developed through social dialogue." In response to criticism that the Ministry should not push forward while ignoring reality, she said, "We will keep that in mind."

Assemblyman Lee Yongwoo of the Democratic Party of Korea called for legislative improvements regarding wage arrears and workplace harassment. He said, "Although a revision to partially reduce the scope of non-prosecution by victim's will in wage arrears cases is being implemented, I believe the law should be amended toward full abolition." He also mentioned, "Since employers are still allowed to conduct self-investigations in workplace harassment cases, a law to prevent such self-investigations is also necessary."

Director-General Lee responded, "There are clear cases of abuse of the non-prosecution by victim's will system, but there are also positive aspects. My understanding is that the recent revision partially abolished it for wage arrears cases." She continued, "We will thoroughly review the suggestion for complete abolition." Regarding self-investigations of workplace harassment, she said, "Many workers in small and medium-sized enterprises face difficulties with this issue, so we will consider more proactive measures."

There were also a series of criticisms regarding the minimum wage. Although the government emphasized that a labor-management agreement was reached when next year's minimum wage was set in July, Lee Uijae, Chairman of the Minimum Wage Commission, addressed the fact that the Korean Confederation of Trade Unions left the negotiations midway, saying, "Some people say it was an incomplete agreement, and I do not deny that." He added, "We will cooperate in improving the minimum wage decision-making structure."

Concerns were also raised about the high number of minimum wage violations in Daegu. Assemblyman Woo Jaejun of the People Power Party said, "Based on the number of reported cases by workplace, Daegu ranked first in minimum wage violation reports for three consecutive years. Even when adjusted for population, Daegu had the highest number of violations per 100,000 people." Kwon Byunghee, head of the Daegu Regional Employment and Labor Office, responded, "We will work to address the issue."

Regarding the Industrial Accident Compensation Insurance Re-examination Committee, there were remarks about considering its continuation due to insufficient effectiveness. Assemblyman Lee Hakyoung of the Democratic Party of Korea pointed out, "The approval rate for industrial accident re-examinations dropped from 9.29% in 2020 to 5.42% as of last August. However, if cases go to court after the committee's decision is challenged, the approval rate rises to 20.9%." He added, "We cannot avoid considering whether the committee should continue to exist."

Cha Dongmin, Chairman of the Industrial Accident Compensation Insurance Re-examination Committee, explained, "The committee, as a government administrative body, strictly adheres to standards and laws, but when cases go to court, especially those involving bereaved families or disabilities, the courts tend to take a broader view." He also mentioned the lack of sufficient precedents to reference in decision-making and the increasing number of claims. In response to Assemblyman Lee's request to present alternatives with tangible results, he said, "We will take your comments to heart."