Korea wants to raise its retirement age. Its younger workers aren't happy.

Senior citizens browse a job bulletin board at a job fair. [JOONGANG ILBO]

Which age should be considered elderly and when is retirement appropriate are emerging as pressing questions for Korean society as the country is fast heading toward becoming a superaged society in which more than 20 percent of the population is older than 65. 
 
At the moment, the demographic accounts for 19.2 percent of Korea's population, meaning it is only an inch away from hitting the requirement.
 
While Korean law sets the retirement age at 60 or older, some government organizations have started to selectively raise the retirement age to 65, considering the aging demographics of its work force. 
 
In fact, people 60 or older account for the biggest portion of the working population in Korea at 23.4 percent, followed by those in their 50s and 40s at 23.3 percent and 21.5 percent, respectively, according to Statistics Korea's September report. 
 
When it comes to the age threshold of elders, some are arguing that the eligibility for senior welfare benefits should be raised from the current 65 to as high as 75. 
 
 

Older job seekers look through a recruiting board at a job fair in Busan in October. [SONG BONG-KEUN

Retirement age

The Ministry of the Interior and Safety stepped forward to raise the retirement age threshold to 65 in select positions early this month. 
 
Some 2,300 civil servants who work cleaning the environment and managing facilities had their retirement age raised to 65.
 

Daegu Metropolitan City also announced a plan to raise the age threshold to 65 for some 412 civil servants who work for the city and its affiliated organizations.
 
“The latest measure is not relevant to the retirement age of public officials or collective contracts signed with other public institutions,” the ministry said.
 
Some of the younger generation, however, feel threatened by such measures as they see them potentially taking away their jobs. 
 
“It always felt kind of absurd that the management-level staff who don't have much work receive higher paychecks,” said a 32-year-old employee, surnamed Yang, who works for a private company. 
 
“Such cases will only become more abundant once the retirement age goes up.”
 
Online communities, mostly used by the younger generation, echoed such views. 
 
“Productivity will fall, and companies will become something of a nursing home,” said one post on Blind, an anonymous online community for workers. 
 
Such anxiety among younger generations is backed by statistics that show the number of jobs for elders rising while those for younger people stay still. 
 
“The policy that gradually mandated companies to raise the retirement age to 60 from 2016 led private companies to see the number of jobs for people between 55 and 60 increase while those for people between 15 and 29 dived,” Han Joseph, a labor economist at Korea Development Institute, said in a report. 
 
There are those who support the raised retirement age. 
 
“I think it is a contradiction to maintain the retirement age while the average life expectancy has increased,” said a 27-year-old public official, surnamed Kim, who works for the prosecutors' office. 
 
“I agree with it, because that benefit will eventually return to me, as well, later.”
 
Experts say a retirement age increase should be carried out gradually in order to prevent generational conflicts. 
 
“From the nation's point of view, raising the retirement age will have the effect of reducing senior welfare benefits, but from the company's point of view, it will be a burden to maintain their employment, considering their productivity and high salary,” said Lee Jong-wook, an economics professor at the Seoul Institute of the Arts. 
 
“The retirement age should be discussed together with employment structure and pensions.”
 

 
How old should elders be?

In a village called Changseon Island in Namhae County, South Gyeongsang, those aged 65 are considered youths, because its youth club raised the maximum age threshold from 60 to 65 a few years ago. 
 
“Those aged 65 don't want to join the elderly club, because they would be the youngest in the group,” said Ko Kyung-jeon, a leader of one neighborhood on Changseon Island. 
 
“Here, those in their 70s and 80s are still very healthy, and they even go out to do farming. I believe that age bar for the elderly should be raised and also that for retirement as well.”
 
After becoming an aged society in 2000, where seven percent of the population was aged 65 or older, Korean society aged fast for the next 24 years, and there have been calls for a revamp in the seniority system recently.
 
Lee Joong-keun, 83, chair of the Korean Senior Citizens Association, requested that the age of older adults to be upped to 75. 
 
Prime Minister Han Duck-soo said he would review upping that age. Seoul Mayor Oh Se-hoon said Lee's suggestion was the “first step to opening the new era.”
 
“Korean society aged fast for the past 20 years, and problems like a lack of work force accumulated in the labor market. But nobody did anything about it, and now it is all exploding,” said Yang Jae-jin, a public administration professor at Yonsei University. 
 
Improvements in healthspans, or the time a person spends living in a healthy condition, to 72 or 73 years old also contributed in the latest call for reform for senior age. 
 
“Raising the threshold to 75 years old at once is a reckless attempt, but focusing on healthspans could work,” said Kim Mi-gon, head of Korea Labor Force Development Institute for the Aged.
 
“Extending the age threshold by one year every four to six years would enable a soft landing. But instead, the number of jobs for seniors (1.03 million) and benefits (290,000 won per month) will have to be raised, as well as the amount of basic pension.”
 
 
 
 
 
 

BY SHIN SUNG-SIK, LEE ESTHER, MOON SANG-HYUK AND SHIN HYE-HYEON [jin.eunsoo@joongang.co.kr]