It was learned on the 3rd that the Democratic Party of Korea special committee on extending the mandatory retirement age pushed back the period for gathering opinions on options for extending the mandatory retirement age to the regular National Assembly session in September. In political circles, some said, "As the Democratic Party's approval rating has recently dropped only among young people, isn't it delaying the debate on extending the mandatory retirement age to gauge the sentiments of people in their 20s and 30s?" Extending the mandatory retirement age lengthens the tenure of middle-aged and older workers while blocking jobs for young people.
Extending the current mandatory retirement age of 60 in stages to 65 was President Lee Jae-myung's campaign pledge. Accordingly, the Democratic Party had initially planned to pass a bill to extend the mandatory retirement age by the end of last year.
After missing the initial target for handling the bill, the special committee on extending the mandatory retirement age had aimed to complete public opinion gathering by the end of June this year. However, it has now extended the period for collecting public opinion to the regular National Assembly session in September.
A key official on the Democratic Party's special committee on extending the mandatory retirement age said, "It is true the discussion is not easy as we are also drawn to areas not directly related to the stakeholders in extending the mandatory retirement age (approval ratings among young people)," adding, "We will meet frequently with labor and business circles to hear their views and shape our position."
These days, the Democratic Party is particularly concerned that its approval rating is falling among young people. In a poll conducted on the 25th and 26th of last month by Realmeter at the request of Energy Economy News, the Democratic Party's approval rating stood at 41%. However, approval among young people was 23.3% for those in their 20s and 23.5% for those in their 30s, roughly half the overall level. (For details, see the National Election Poll Deliberation Commission.)
On the 1st, the Democratic Party even held a forum at the National Assembly to discuss the causes of young voters drifting away and possible responses, reflecting its concern over falling support among young people. On the 2nd, President Lee Jae-myung said, "We should use additional tax revenue to create a stable source of investment for future generations," a remark interpreted in the same context.
A senior member of the Democratic Party leadership said, "It is true that extending the mandatory retirement age affects youth employment, even indirectly, so policies on extending the retirement age and youth jobs need to be addressed comprehensively." According to the Ministry of Data and Statistics (MODS), in May, the number of employed people ages 15 to 29 fell by 255,000 from the same month a year earlier. That was the largest drop since January 2021, when the economy was affected by COVID-19.
Meanwhile, labor groups say the extension of the mandatory retirement age should be expedited. They argue the age should be raised by one year annually starting in 2028 to reach 65 in 2032. The idea is to extend the current retirement age of 60 before 2033, when National Pension benefits are pushed back to 65, to prevent an income gap.