The Democratic Party of Korea on the 3rd again stressed it would handle within the year a plan to gradually raise the statutory retirement age to 65. But labor and management remain far apart on key issues such as the timing of the increase, a combined design of "retirement age extension and reemployment," and a revamp of the wage system, making a bumpy road to agreement likely. Some say the within‑the‑year goal is not realistic without active mediation from the political sphere.
The Democratic Party retirement age extension special committee held its first general meeting at the National Assembly that day, shared the progress of opinion gathering so far, and discussed plans going forward. It was the first open meeting since being elevated from a task force (TF) to a special committee, signaling a push to speed up legislative discussions.
Floor leader Kim Byung-kee said at the meeting, "Extending the retirement age is a positive plan that can fill income gaps for older people, stabilize pension finances, and utilize skilled workers. However, the potential for a contraction in youth employment and increased burdens on corporations should be fully examined." He added, "We will do our best to deliver legislative results."
The views of labor and management representatives at the meeting were clearly divided. Ryu Gi-seop, secretary-general of the Federation of Korean Trade Unions, said, "There have been settings where we have agreed on issues such as elderly poverty, low birthrate, the national pension eligibility age, and the decline in economic activity. However, it is undecided whether we will develop these into a proposal," adding, "I hope the special committee will move with speed and not disappoint the public and workers."
Labor circles say the statutory retirement age should be extended in stages to 65 by 2033, as pledged in the Democratic Party of Korea's presidential campaign. With the start age for receiving National Pension benefits rising to 65 in 2033, they argue the five‑year "income cliff" after the current retirement age (60) must be addressed.
Management, citing Korea's seniority‑based wage system and instability in youth employment, countered that a "reemployment"‑centered approach is more realistic. If the retirement age is uniformly raised to 65, there are concerns about side effects such as higher labor costs, a contraction in hiring among the young, and the spread of early retirement. Reemployment is a form of continued employment in which employment is maintained through a new contract after retirement.
Lee Dong-geun, executive vice chairman of the Korea Enterprises Federation, said, "Extending the retirement age is also related to jobs for future generations, so we must approach it prudently," emphasizing, "The special committee needs a process that broadly embraces diverse opinions from all walks of life."
Lee Myeong-ro, head of the human resources policy division at the Korea Federation of Small and Medium Enterprises, also noted, "If we extend the statutory retirement age, it could, contrary to the aim of securing employment stability, significantly increase employment instability." He added, "By contrast, reemployment expands how corporations can utilize their workforce while having relatively fewer side effects on youth employment," and, "Even if extending the retirement age is unavoidable, a wage system overhaul needs to come first."
The special committee initially presented a schedule to prepare a bill by August, make a joint labor‑management announcement in September, and push legislation in November, but the timeline slipped as it failed to find common ground on contentious points. If no concrete outline emerges this month, the goal of handling it within the year becomes virtually unattainable.
In particular, extending the retirement age is highly sensitive across generations, and if complementary measures such as incentives for youth hiring or expanding youth jobs in the public sector are not prepared, legislative resistance could grow. The scope of government support such as social insurance premiums and wage subsidies, and whether to apply the changes in phases by business sites' size, are also key issues to be discussed in the National Assembly.
Despite the many issues piled up for discussion, the Democratic Party of Korea repeatedly emphasized its will to legislate within the year. Kim Ju-young, a Democratic Party of Korea lawmaker and secretary of the special committee, said after the meeting, "There were areas where views were close on the retirement age plus reemployment plan and measures to ensure the effectiveness of the wage system overhaul," adding, "We will try to draft a bill by year‑end with the goal of passing the plenary session."
Kim said, "Except for management, many of the representative Commissioners said extending the retirement age is something everyone agrees on, so it is a matter of making a decision," adding, "It would be best if both sides fully agree, but if not, we have no choice but to proceed with content that reflects both sides' views." If labor and management remain on parallel tracks, this is read to mean the ruling party could craft a mediation plan to legislate within the year.
Some also analyze that the Democratic Party of Korea did not revise its "within‑the‑year legislation goal" as a strategic choice to maintain momentum. A Democratic Party of Korea official said, "Extending the retirement age is not something you can ram through. The impact is too big, so we must coordinate both sides' positions as much as possible," adding, "Only by setting a within‑the‑year legislation goal can we generate momentum for discussions and create pressure even in working‑level meetings."