The Democratic Party of Korea proposed a phased plan to extend the retirement age to labor and business circles. The plan would gradually raise the retirement age starting as early as 2028 and extend it to 65. The party said it will finalize the plan within the year and introduce it at the National Assembly.
According to the political sphere on the 4th, the Democratic Party of Korea's special committee on retirement-age extension subcommittee held a meeting on the 2nd and presented three retirement-age extension options to labor and business circles.
Plan 1 starts the extension in 2028 and adds one year every two years until 2036. This plan is said to face strong opposition from business circles, who argue the start is too early.
Plan 2 starts the extension in 2029 and phases it in over 10 years until 2039. It adds one year every three years up to ages 61–62, and one year every two years up to ages 63–64. The last, Plan 3, starts in 2029 and adds one year every three years until 2041. Labor circles oppose Plan 3, saying the completion of the retirement-age extension comes too late.
Because the retirement age is being extended in stages, some people will inevitably reach retirement before 65. The Democratic Party of Korea presented as an alternative a plan to rehire such workers for one to two years after retirement.
A Democratic Party of Korea official said, "Labor and management have formed a tacit consensus to combine retirement-age extension and reemployment and push them forward step by step, while discussing ways to ensure the effectiveness of wage-system reform."
The government said through its state agenda that it will gradually expand the statutory retirement age of 60. The Democratic Party of Korea created a special committee on retirement-age extension and is coordinating the views of labor and management. It initially encouraged a voluntary agreement between labor and management, but as the two sides remained far apart, the party appears to have stepped in to present a compromise.
The Democratic Party of Korea also plans to push measures to ease procedures for changing work rules that disadvantage employees. To reform the wage system, changes to work rules are necessary, but under current law, changes that disadvantage workers require the "consent" of a union or a majority of employees. The party plans to ease this "consent" procedure to "hearing opinions" so wage-system reform can proceed quickly.
The Democratic Party of Korea plans to begin the legislative process at the National Assembly within this year. It aims to finalize the official plan within the year and introduce it at the National Assembly, with a goal of passing the plenary session in the first half of next year.