Park Myeong-ju, who joined Hyundai Heavy Industries in 1983, retired in 2019 at the age of 60 after 42 years with the company. However, Park is still working at Hyundai Heavy Industries. Since 2020, Park has been in charge of quality management and training in the circuit breaker production team as a skilled contract employee. Park said, "In my heart, I want to work until I am 68."
Dongwon Home Food, a food company, has a retirement age of 60, but employees who wish to continue working can do so as contract employees. These positions are renewed annually, and unless there are health issues, extensions are generally not difficult to obtain. The oldest current employee is 75.
◇ Retiring at 60, but on site, "skilled labor is needed"
On the 26th, the Ministry of Employment and Labor published a casebook of mid-to-late career corporations that continue to employ workers after retirement. The casebook includes examples from 10 corporations that have continued to employ retired workers.
Continuing employment is widely seen as beneficial for both corporations and workers. Employees can expect relatively stable income even after retirement, and corporations can secure skilled labor that has been vetted over decades.
Seven out of ten are corporations related to manufacturing for these reasons. Most manufacturing corporations are located in rural areas, where there are fewer young people, and younger generations are less inclined to prefer manufacturing jobs. As retirements reduce employee numbers, corporations are finding it challenging to fill these gaps. Therefore, many determine that it's better to rehire existing employees if salary issues are addressed.
Hyundai Heavy Industries rehired workers for two years as skilled contract employees after the age of 60. Rehired workers sign contracts ranging from a minimum of three months to a maximum of one year, depending on on-site requests. The oldest employee on-site is 70 years old.
Dongkuk Steel Mill has extended its retirement age. In 2022, it was changed from 60 to 61, and next year, it plans to extend it to 62. Some are rehired through mutual agreement after retirement. Currently, about 80 employees are working as contract employees. Kwon Young-joo, head of the labor-management harmony team at Dongkuk Steel Mill, said, "Amid a rapidly changing labor environment, extending the retirement age to keep highly skilled labor employed for a certain period would significantly help maintain productivity and human competitiveness."
◇ Concerns about "age equates to low stamina"?..."They perform better with extensive know-how"
Dongwon Home Food, which operates Dongwon Group's restaurant, continues to employ workers as contract employees even after the age of 60. They can continue working unless health issues arise. They have also hired kitchen workers in their 70s through new recruitments. Jang Kyung-hye, Vice Administrator of HR Service Team 1 at Dongwon Home Food, said, "Contrary to concerns about being physically demanding due to age, the middle-aged actually work better because they have more know-how. The eldest cook is 75 years old, and they are not only excellent in their job but also show great leadership."
In medical institutions, continued employment for middle-aged and elderly workers is ongoing. Ilsan Gospel Medical Foundation changed its employment rules in 2022 to rehire on a contract basis annually after retirement. While doctors, nurses, and care workers are all eligible, middle-aged staff are also hired anew, particularly for nursing assistants and care workers. Choi Ung-yeol, who is 77 and responsible for guiding patients at the hospital, said, "My quality of life has improved with a regular and stable routine." If both the hospital and employee agree, Kumgang Nursing Hospital renews one-year contracts for those over 60, and the contract is automatically extended in the absence of health or employment issues a year later. There are no age restrictions for new hires.
Lee Jeong-han, head of the Employment Policy Office at the Ministry of Employment and Labor, said, "We hope this will increase the recognition of the skilled technology, production know-how, and experience of the middle-aged and elderly, creating opportunities for both middle-aged employees and corporations to create value together."