South Korea mulls removal of age limit in the workplace

South Korea is considering the removal of the age limit in the workplace under the Yoon Suk-yeol administration’s economic policy approach to cope with workforce shortages caused by demographic change. According to public officials, one option is extending the retirement age from 60 to 65 or possibly even older. Some have suggested eliminating the retirement age altogether or letting businesses rehire retirees by creating legal ground or offering benefits. Previous administrations had also highlighted the seriousness of imminent workforce shortages, but neither the government nor National Assembly has yet to put forward any meaningful legislation. According to Statistics Korea, the working-age population is projected to decline by 35.3% from 37.38 million in 2020 to 24.19 million in 2050. Under the expected demographic change, there is a high possibility that the nation’s productivity will critically weaken.