The Korea Employers Federation (KEF) stated that extending the retirement age to 65 would result in an additional annual employment cost of 30.2 trillion won.

Employment of 900,000 Young Adults Aged 25-29 Possible, Amidst active discussions on raising the retirement age, a study shows that extending the retirement age to 65 could incur additional employment costs exceeding KRW 30 trillion annually.,
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, According to the research report ‘Estimation of Costs and Implications of Raising the Retirement Age’, commissioned by the Korea Economic Research Institute (KERI) and analyzed by Professor Kim Hyun-seok from Busan University, extending the retirement age from 60 to 65 would increase the cost associated with additional employment to KRW 30.2 trillion in the fifth year of implementation.,
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, The report estimated the scale [of employment] by using supplementary data on work patterns from the Economically Active Population Survey by Statistics Korea. It calculated the number of regular workers aged 60-64 who would be employed due to the retirement age extension minus those who would continue to work regularly even without the extension.,
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, ‘ MobileAdNew center ‘, It found that in the first year of implementing the 65-year retirement extension, extending the employment of 60-year-old regular employees would add about 58,000 people. By the fifth year, as the extension applies to all regular workers aged 60-64, the additional employment would increase to about 590,000 people.,
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, Based on this, it calculated that the additional employment cost in the first year would amount to KRW 3.1 trillion, and by the fifth year, it would grow to KRW 30.2 trillion annually. These costs include direct expenses like expected wages and indirect costs such as employer contributions to the four major insurance programs.,
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, KERI stated, “The employment costs of KRW 30.2 trillion for 60-64-year-olds due to the retirement extension could employ approximately 902,000 young workers aged 25-29, based on the average monthly wage of this age group (KRW 2.791 million). We must carefully consider the impact of retirement age extension on investments and new hiring.”,
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, The report suggests that since the need for continuous employment of older workers varies by industry and company, matters related to retirement should be left to the autonomy of the companies.,
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