Seoul, Nov 20 (NationPress) South Korea's Labour Minister Kim Young-hoon urged on Thursday for legislative action to increase the statutory retirement age by the end of this year. He highlighted the necessity for both companies and labor unions to reach a compromise in light of the country's rapidly aging population.

Speaking to journalists at the government complex in Sejong, Kim stated that raising the retirement age is "a path that must be taken," while recognizing the difficulties in reconciling differences between both parties.

According to Yonhap News Agency, he mentioned, "Increasing the legal retirement age may lead to conflicts regarding job opportunities in major corporations and public sectors, which are highly favored by young people." He added, "If the retirement age is increased in these sectors, businesses may have to reduce hiring among the youth, so it’s crucial to find a common ground that allows both generations to coexist."

Labor organizations are advocating for the legislation to be enacted within this year, citing the swiftly aging demographic and the financial strain on retirees during the five-year period before national pension benefits commence at age 65.

On the other hand, business associations warn that raising the retirement age without adequate discussions or support could jeopardize investment and job prospects for the younger population, proposing alternatives such as reemployment opportunities post-retirement.

When questioned about his belief in the necessity of passing the legislation by the year's end, Kim maintained his original stance. He stated, "I believe the government’s role is to facilitate a dialogue between labor and management to help achieve an agreement," and mentioned that the government currently has no plans to introduce its own proposal.

In 2016, South Korea had already raised the legal retirement age for workers to 60, changing the previous recommendation of 60 into a statutory requirement.