A job fair (Image courtesy of Yonhap)
SEOUL, Sept. 25 (Korea Bizwire) — South Korea’s widening gap between retirement and pension eligibility is fueling structural imbalances in middle-aged employment, with Seoul turning to data-driven policymaking to address the challenge.
According to a new survey of 10,000 job seekers and 450 companies released by the Seoul Metropolitan Government and the Seoul 50 Plus Foundation, the average retirement age of 49.4 years leaves a 15-year income gap before pension benefits begin at 65. Meanwhile, many workers now expect to work until 73, highlighting the strain on household finances.
The survey, the largest of its kind, found that 82 percent of job seekers cited livelihood as their main motivation for reemployment, prioritizing wage levels over other factors. The average desired monthly wage was 3.81 million won, though respondents said they could accept about 500,000 won less.
Regular employment remained the most preferred option, but older respondents showed more willingness to take on fixed-term contracts. Men emphasized pay and benefits, while women valued shorter commutes and flexible hours, often citing household responsibilities.
Employers showed mixed willingness to hire older workers. Manufacturing led demand, followed by wholesale and retail, though interest declined with age. Still, labor shortages in sectors such as transport and manufacturing drove hiring of workers in their 60s.
Companies cited problem-solving, interpersonal skills, and reliability as the most valued traits, while most favored offering salaries in the 2 to 3 million won range. Employment subsidies were highlighted as the most effective government support.
Experts said the findings underscore the mismatch between job seekers’ wage expectations and what companies are willing to pay — a gap of up to 1.81 million won — and called for policies that align labor supply with employer needs.
Seoul plans to use the data to shape targeted policies, including the launch next March of a “Middle-Aged Employment Academy,” designed as a one-stop platform offering retraining and customized programs by age group. The city aims to expand the initiative to 16 campuses by 2028.
“Seoul will provide 40-somethings with growth opportunities, 50-somethings with career transitions, and 60-somethings with social contribution roles,” Mayor Oh Se-hoon said, pledging incentives for firms that retain older workers and more flexible performance-based systems.
M. H. Lee (mhlee@koreabizwire.com)
