Government to increase retirement age in phases

The National Human Rights Commission of Korea said Tuesday that the Ministry of Employment and Labor had informed it the government would begin working to meet its recommendation to gradually raise the statutory retirement age.

“We plan to draft new legislation to gradually raise the retirement age as part of the government’s national agenda,” the ministry said, according to the commission. “The government will actively support discussions so that labor and management can find common ground in a way that does not provoke generational conflict or deepen job disparities.”

The ministry added that it would “prepare support measures so that extending the retirement age can take root in workplaces as a model of intergenerational coexistence, by easing corporate burdens and supporting youth employment.”

Korea’s human rights watchdog last year recommended raising the statutory retirement age to 65, citing the need to protect older workers’ rights as the country faces rapid population aging and changes in its social structure. Currently, employers can require workers to retire at 60.

The commission said the ministry’s pledge to “gradually raise the retirement age” indicated that its recommendation had been accepted.

However, the ministry told The Korea Herald that it had not yet decided whether to set the new retirement age at 65, adding that the outcome would largely depend on ongoing debates in the National Assembly.

The National Human Rights Commission of Korea said raising the retirement age was necessary to prevent income gaps after retirement and help address poverty in old age.

The commission also pointed to concerns about the pension system, which is gradually raising the eligibility age. Under current rules, the age at which people can begin receiving pensions will increase from 60 in 2026 to 65 by 2033.

Labor groups have warned that keeping the legal retirement age at 60 would create a five-year income gap, a burden that could be particularly severe in South Korea, where elderly poverty rates remain among the highest in developed economies.

According to Statistics Korea, the relative poverty rate among people aged 66 and older stood at 39.7 percent as of September 2024, up 0.4 percentage point from a year earlier.

The commission also cited longer life expectancy, a rising old-age dependency ratio and a shrinking labor force as additional reasons to consider extending the retirement age.

A total of 12 bills related to extending employment have been proposed in the National Assembly.

Two bills seek to extend the retirement age or require companies to reemploy workers with two or more children. The remaining 10 bills address broader employment extension measures. Of these, nine propose raising the legal retirement age to 65, while one would allow employers to choose between extending the retirement age and rehiring workers after retirement.

The proposals largely reflect the divide between labor and business groups.

Labor groups have called for raising the retirement age to 65, while business groups favor a post-retirement rehiring system. Companies say extending the retirement age would increase labor costs, as many Korean firms operate seniority-based wage systems in which pay rises with years of service.

Under a rehiring system, workers wishing to remain employed would retire at the current age but could be rehired with wages reset based on job duties or performance.

Shortly after the commission’s statement, the Korean Confederation of Trade Unions expressed cautious support, while warning against policies that could deepen social divisions.

“Given that South Korea has already entered a super-aged society, the proposal has some significance,” said Jeon Ho-il, spokesperson for the KCTU. “However, extending the retirement age should not come at the cost of worsening labor conditions, such as wage cuts or expanding the wage peak system.”

“It is also undesirable to frame young workers and older workers as being in conflict,” he added.

“The government should focus on closing gaps in the national pension system and ensuring stable employment, rather than restructuring the labor market in ways that undermine workers’ rights.”

Meanwhile, the Korea Enterprises Federation told The Korea Herald it had no additional comment on the ministry’s decision to accept the human rights commission’s recommendation.

The federation said it maintains its stance in favor of a rehiring system after retirement, warning that raising the legal retirement age could deepen labor market duality, worsen youth unemployment and increase corporate burdens.