Complex Interests Between Labor, Management, and Generations
Political Burden Slows Progress
Democratic Party Steps Back from Enacting Legislation This Year
People Power Party Also Passive on Legalization
Both the ruling and opposition parties are showing interest in the issue of extending the retirement age, but legislative discussions are not gaining momentum. This is because the issue involves complex interests among labor, management, and different generations, including wage structures and youth employment, making it politically burdensome to accelerate the debate.
According to political circles on November 7, the National Assembly's Climate, Energy, Environment and Labor Committee is scheduled to hold a subcommittee meeting for bill review on the 18th, but does not plan to address bills related to retirement age extension. An official from the office of Assemblyman Kim Jooyoung, who serves as the secretary of the Special Committee on Retirement Age Extension for the Democratic Party and the ruling party secretary of the committee, explained, "There are still issues to be discussed by the special committee, so the bill will not be included in this subcommittee meeting."
The extension of the retirement age was a presidential campaign pledge and a key policy task of President Lee Jaemyung. Not only the ruling party but also the labor sector is deeply interested in this issue. On November 5, the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions officially called on the National Assembly to pass a bill extending the retirement age to 65 within the year, and the Democratic Party responded positively. The Democratic Party has introduced nine bills related to extending the retirement age, including amendments to the Act on Prohibition of Age Discrimination in Employment and Promotion of Employment for Older Persons. Excluding specific conditions, most of the bills are similar in that they propose extending the retirement age to 65, meaning that if there is political will, swift progress is possible.
However, the Democratic Party appears to be stepping back from enacting the legislation within the year. On November 6, Democratic Party leader Jeong Cheongrae indicated a more cautious approach during a policy meeting with the Korean Confederation of Trade Unions, stating, "Since phased extension of the retirement age has been adopted as a key policy agenda, we will listen to opinions and strive to be helpful." Kim Hyunjung, Democratic Party spokesperson, also said, "I cannot say definitively," when asked about pursuing legislation within the year.
The People Power Party has also entered discussions on extending the retirement age, but remains passive about enacting legislation. At a party strategy meeting on the same day, People Power Party floor leader Song Eonseok said, "Extending the retirement age without wage cuts, as demanded by large labor unions, is a serious problem," and added, "We need to establish a grand social compromise body to formulate policy," thus expressing only a general stance. While agreeing with the idea of extending the retirement age, the party insists that alternatives must be discussed in consideration of social security systems and youth job guarantees. The only related bill was introduced in March last year by Assemblyman Kim Wisang of the People Power Party, which would require companies to continue employment but give them the option to choose between extending the retirement age or rehiring after retirement.
The extension of the retirement age is an issue intertwined with multiple agendas. Extending the retirement age brings together different interests between labor and management, and between generations, including the need to overhaul wage structures, the burden of increased labor costs for companies, and youth employment. The opposition party also finds it difficult to oppose unconditionally, so rather than drawing clear lines, it is focusing its attacks on issues such as real estate. One People Power Party lawmaker on the committee said, "To come up with alternatives, we need to consider measures that will not hinder youth employment or corporate competitiveness."
However, considering current societal trends, some believe that the retirement age extension issue must be brought into public discussion in some form, and that now is the right time to proceed with related debates. The National Assembly Futures Institute recently stated in a report on the era of retirement age extension, "The seniority-based wage system has already reached its structural limits," and suggested, "Discussions on extending the retirement age should be accompanied by wage system reform and lead to broad social consensus."
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