South Korea cites Japan’s example and argues that a reemployment system should be introduced = Korean netizens: “Employment practices and wage structures are different from Japan’s”

The Korea Federation of SMEs and other major business organizations (K-FB) published a report arguing that, to expand employment for older workers, South Korea needs a phased system centered on re-employment rather than a uniform extension of the statutory retirement age. The organization visited Japan’s Ministry of Health, Labour and Welfare, Keidanren and local companies to study the background and implementation status, and published its report, “Japan’s Retirement Age Extension Examples and Implications,” on 11 October.

The report explains how Japan has maintained the statutory retirement age at 60 while securing employment opportunities through age 65 via re-employment. It states that, when the law was amended in 2004, Japan introduced a system centered on re-employment rather than raising the retirement age, phased in mandatory requirements from 2006, expanded them from 2013 and applied them fully from 2025.

In response to the report, many comments appeared online in South Korea, including “This is not about introducing Japan’s system as it is” and “We need to create a system suited to South Korea’s circumstances.” Many voices called for careful consideration of older workers’ wage structures and the effects of extending the retirement age. Lee Sang-cheol (이상철), head of the organization’s headquarters, called for an urgent, flexible design centered on re-employment that would avoid conflict with youth employment and ensure corporate autonomy.

The organization said that, in implementing policies for older-worker employment, the division of roles between labor, management and the government and the formation of social consensus are important. It also pointed out that shifting to a wage structure emphasizing job responsibilities and performance would reduce companies’ personnel costs and promote the employment of older workers. Some comments online in South Korea also said, “Even if the retirement age is extended to 65, it cannot be called a good system if wages do not rise and employment for young people declines,” suggesting that both countries need to approach institutional design cautiously.