This file photo shows the buildings of South Korea’s major companies in Seoul. (Yonhap)
SEOUL, July 11 (Korea Bizwire) — South Korean firms prefer to reemploy seniors instead of simply letting them retire, a major business association said Monday.
The Korea Enterprises Federation conducted a survey of 1,047 companies employing over 30 individuals, of which 67.9 percent expressed a preference for reemploying retiring personnel.
In contrast, 25 percent chose to extend the retirement period, while 7.1 percent favored eliminating retirement entirely.
Reemployment provides companies with the opportunity to modify employment terms, resulting in reduced labor costs.
The survey findings revealed a preference for reemployment among larger companies.
Two-thirds of the surveyed companies favored reemploying senior individuals due to the continued benefit derived from their expertise.
An additional 47.1 percent identified “changing employment regulations to enhance wage flexibility” as a vital government initiative in addressing the practice of senior reemployment.
H. M. Kang (hmkang@koreabizwire.com)
