The Democratic Party proposed discussions on extending the current 'legal retirement age' of 60. The party suggested that the gap between retirement and pension receipt could lead to 'elderly poverty,' thus calling for public discourse at the National Assembly level. Concerns over labor shortages due to low birth rates and aging populations have heightened these worries. Although this issue has been discussed at the Economic and Social Labor Committee, the discussions have stalled due to the absence of the Korean Confederation of Trade Unions amid a state of emergency. The Democratic Party anticipates gaining policy leadership in the context of an early presidential election.
Jin Seong-jun, the Democratic Party's policy committee chair, stated at a press conference on the 6th, “It is time to start discussions on extending the legal retirement age, which has been increasingly demanded by the public due to rapid aging and low birth rates.” He noted, “As life expectancy is increasing and we are facing a low birth crisis, the issues of potential labor force reduction and labor scarcity have emerged as social and economic problems,” adding, “If we maintain the current retirement system, it will be difficult to fill the gap of about five years between retirement and pension receipt.”
According to the government's pension reform plan, the starting age for receiving the National Pension will increase from the current 63 to 65 by 2030. The government intends to gradually raise this age. This implies a longer period of income gap for workers. Previously, during the last general election, the Democratic Party pledged to legislate the extension of the retirement age to 65, linked to the age of receiving the old age pension.
Jin, the policy committee chair, mentioned, “The Korean Confederation of Trade Unions has withdrawn from the Economic, Social and Labor Committee, causing discussions to halt. It is now time for the National Assembly to take serious action,” and proposed, “Let’s start with small businesses and extend the retirement age gradually.”
The core issue is the 'employment type' of workers with extended retirement age. This is because the interests of labor and management diverge when costs are considered. Jin also stated, “Corporations want new hiring to account for labor cost differences, while labor wants continued employment,” emphasizing the need to begin discussions on how to share the burden of labor costs to reach a social consensus.
The ruling party, People Power Party, also agrees on the necessity of the extension. They note that adjustments in pensions, retirement age, and the age of seniors must be made. Up until just before the state of emergency, the party's gap resolution committee was preparing legislation aimed at early this year. Currently, however, their activities have essentially come to a halt. Nevertheless, the party leadership is negative about discussions at the National Assembly level that bypass the Economic, Social and Labor Committee. Some within the party express concerns that they will lose control over these issues to the ruling Democratic Party.
Kim Sang-hoon, the People Power Party's policy committee chair, stated, “During the activities of the gap resolution committee, we had discussed government consultations for extending employment or re-hiring based on wage peak systems and other salary adjustments,” but he added, “It is necessary to consider the adverse effects such as reduced promotion opportunities for young people, decreased job opportunities for the youth, and excessive wage burdens on corporations.” He also remarked, “It is undesirable to unilaterally undermine the negotiation process of the Economic, Social and Labor Committee and shift discussions to the National Assembly.”