65 Retirement Age Extension in Fast Track... National Assembly Legislation in the Second Half of the Year Draws Attention

Discussion of the '65 retirement age extension,' the biggest issue in labor legislation in the second half of the year, is now set to move into full swing. As the Special Committee on Extension of Retirement Age under the DPK prepares to release its final proposal at the end of this month, the government and both ruling and opposition parties are also beginning legislative preparations, putting the retirement age bill at the center of labor issues in the regular session of the National Assembly.
According to the government and political circles on the 7th, legislation to extend the retirement age, which had been delayed because of elections, is expected to reach a major turning point starting with the second-half regular session of the National Assembly. Once the reorganization of the Assembly's leadership is completed, lawmakers are expected to begin full-scale review of related bills through the relevant Standing Committees.
Extending the statutory retirement age to 65 has been the labor sector's strongest demand since the beginning of this year. As the income gap between the National Pension Service (NPS) benefit start age and the retirement age has emerged as a social issue, the need for legislation has grown as well. The two major umbrella labor unions are expected to intensify pressure for legislation after the elections.
The DPK's Special Committee on Extension of Retirement Age is also nearing the end of its activities at the end of this month, and it is expected to release its final proposal soon. The People Power Party is reportedly preparing its own alternative through its policy committee and the Climate, Energy, Environment and Labor Committee. However, disputes over key details remain. Major questions include when the policy should take effect, whether wage system reform should proceed in parallel, and how to minimize its impact on youth employment.
Kim Young-hoon, Minister of Employment and Labor, said at a recent informal meeting with the press corps, "I believe the discussion on extending the retirement age has matured sufficiently," adding, "It would not be helpful for the government to take a position first during the social dialogue process. The government's views will be presented during the legislative process."
Labor circles are also reigniting the debate over extending the retirement age.
The Federation of Korean Trade Unions (FKTU) announced on the day the results of a public survey on statutory retirement age extension, showing that 88.3% of respondents supported raising the retirement age to 65. The survey was conducted by Macromill Embrain Co., Ltd. for two days starting on the 27th of last month among 1,000 adult men and women.
The FKTU said, "We plan to bring the retirement age debate, which had been delayed because of the June 3 local elections and other factors, back to the forefront and pressure the National Assembly and the government so that legislation can be passed once the reorganization of the second-half Assembly leadership is completed."
By contrast, management representatives are taking a cautious stance. They worry that extending the retirement age could raise labor costs for companies and reduce youth hiring. Some also say that wage system reform and better employment methods for older workers should be discussed together with the retirement age issue.
Along with the retirement age debate, the Framework Act on Workers and the worker presumption system, which would amend the Labor Standards Act, are also seen as major variables in second-half labor legislation. The MOEL had originally aimed to push the legislation before International Workers' Day on May 1, but the plan was delayed after facing resistance from both labor and management.
Management representatives oppose the measures, citing higher business burdens, while labor circles also object to the government's proposal because it does not fully apply to labor providers. As a result, both sides are negative toward the current government draft. In addition, the direction of the Lee Jae Myung administration on major labor policy issues, including mandatory and fund-based Retirement Pension, Unemployment Benefits for voluntary job leavers, and structural reform of EI, is expected to become clearer in the second half of the year.
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jhyuk@fnnews.com Kim Jun-hyuk, Lee Hae-ram Reporter