{"id":2203843,"date":"2024-02-15T16:16:57","date_gmt":"2024-02-15T07:16:57","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203843"},"modified":"2024-02-16T10:24:53","modified_gmt":"2024-02-16T01:24:53","slug":"poverty-and-increased-life-expectancy-mean-many-senior-south-koreans-must-work","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/02\/poverty-and-increased-life-expectancy-mean-many-senior-south-koreans-must-work\/","title":{"rendered":"Poverty and increased life expectancy mean many senior South Koreans must work"},"content":{"rendered":"

In South Korea, elderly workers, legally defined as those aged 60 and up, are now projected to <\/span>outnumber<\/span><\/a> those in their 20s by the end of 2024, signaling a deep change in the country’s demographic structure.\u00a0<\/span><\/p>\n

Currently, workers in their 20s constitute the largest segment of the workforce, accounting for 23%. However, they are closely followed by the senior population, who comprise a whopping 21%.<\/span><\/p>\n

This shift, alongside increasing life expectancy, falling birth rate, and the <\/span>highest rate of poverty<\/span><\/a> among the elderly population in the OECD, paints a stark picture that employment for elderly Koreans is no longer a choice but a necessity and working past retirement age (<\/span>60<\/span><\/a> in South Korea) is a matter of survival.\u00a0<\/span><\/p>\n

Jeon Young-mook, 75, took a job as an apartment security guard following his retirement from a career in public administration at the age of 58. The physically demanding job sees Jeon work 24-hour shifts every two days \u2014 but it was one of the rare opportunities still open for a man his age.\u00a0<\/span><\/p>\n

\u201cI have a daughter and a son to think about and I wanted to reduce their burden, especially with high healthcare expenses and <\/span>inadequate pension funds<\/span><\/a>. Working as a security officer allows me to support my family and maintain a sense of independence,\u201d Jeon told <\/span>Korea Pro<\/span><\/i>.\u00a0<\/span><\/p>\n

\"\"

Jeon Young-mook, a 75-year-old security guard in his office, where he eats and sleeps during his 24-hour shift | Image: Korea Pro<\/p><\/div>\n

WHAT THE DATA SHOWS<\/b><\/p>\n

Jeon’s story is far from unique. According to <\/span>data<\/span><\/a> from Statistics Korea, the employment rate for those aged 65 and over in South Korea stood at 36.2% as of 2022, a 1.3% on-year increase and the <\/span>highest among major OECD countries<\/span><\/a>.<\/span><\/p>\n

Last year, three out of 10 South Koreans aged 65 or above were employed, but the employment opportunities and types of jobs available to them are highly limited.\u00a0<\/span><\/p>\n

The surge in the number of elderly citizens who are employed (an increase of 6.1 percentage points since 2012) also reflects the increasing desire among those aged 65 and older to continue working.\u00a0<\/span><\/p>\n

Statistics Korea data reveals that almost 70% of respondents expressed aspirations to work, at least until the age of 73, on average.\u00a0<\/span><\/p>\n

A recent survey by the Korea Employment Information Service shows similar results and adds that such desire to keep working is primarily driven by financial needs.<\/span><\/p>\n

The issue is exacerbated by a growing trend of companies letting their senior employees go before the legal retirement age.\u00a0<\/span><\/p>\n

The latest report from Statistics Korea <\/span>reveals<\/span><\/a> the average retirement age is 49.4 years old, more than a decade earlier than the legal retirement age, with businesses surveyed citing downturns and operations suspensions as the primary factors driving this trend.<\/span><\/p>\n

Further concerning is the coupling of this trend with the increasing average life expectancy for South Koreans, which currently stands at 82.7 years, according to the Korean Statistical Information Service <\/span>data<\/span><\/a>.\u00a0<\/span><\/p>\n

\"\"

An elderly woman comes out of a facility that offers free meals by Tapgol Park | Image: Korea Pro<\/p><\/div>\n

LACK OF PENSION, INCREASING COMPETITION<\/b><\/p>\n

According to Statistics Korea, while both the labor force participation rate and the employment rate for elderly South Koreans have seen a slight uptick in recent years, this masks the underlying struggles with job security many seniors face.<\/span><\/p>\n

Choi Bong-ho, 78, embodies the hardships many elderly job seekers face. After his previous workplace, a welfare center, shuttered during the pandemic, Choi often finds himself queuing for a free lunch near Tapgol Park in central Seoul after an unsuccessful job hunt at local employment centers.<\/span><\/p>\n

\u201cOn paper, I\u2019m classified as a potential employee under the government’s elderly employment program, but even with a good resume and extensive work experience, there’s no telling when I’ll be able to work again,\u201d Choi told <\/span>Korea Pro. <\/span><\/i>He cited<\/span> increasing competition and lack of interest by employers in candidates considered too old as the reasons he\u2019s finding it so difficult to find a job.<\/span><\/p>\n

Jeong Jin-young, a 67-year-old mother to a middle-aged son, was lining up for a free lunch alongside Choi. \u201cAfter paying my monthly rent with my pension, I only have 90 thousand won ($67.39), so I try my best to save up as much as I can,\u201d she said, lamenting how she had to give up on her career after childbirth, leaving her with an empty resume.<\/span><\/p>\n

\u201cI don\u2019t think I\u2019ll die any time soon. Finding the next meal is my biggest concern,\u201d Jeong told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

The number of pension recipients is increasing, with over 90% \u2014 7.8 million senior citizens \u2014 of those eligible to receive pension now drawing one. <\/span><\/p>\n

The average monthly pension amount stands at $517 (690,000 won), <\/span>data<\/span><\/a> as of May 2022 shows. For six out of 10 recipients, this amount only covers 40% of their minimum living expenses, <\/span>according<\/span><\/a> to a Statistics Korea <\/span>survey<\/span><\/a>.<\/span><\/p>\n

Prospects are not positive for current or future pensioners, with experts previously telling<\/span> Korea Pro<\/span><\/i><\/a> that the South Korean government is approaching a \u201cpension cliff\u201d due to fiscal and demographic reasons.\u00a0<\/span><\/p>\n

\"\"

An elderly man at Tapgol Park in central Seoul | Image: Korea Pro<\/p><\/div>\n

LACK OF JOB OPTIONS<\/b><\/p>\n

Even for those who have a job, concerns linger.\u00a0<\/span><\/p>\n

\u201cThis job marks my tenth position after age pushed me out of previous roles,\u201d Jeon told <\/span>Korea Pro<\/span><\/i> in his security guard office.\u00a0<\/span><\/p>\n

\u201cThankfully, this apartment complex hires older men, but the moment it opts for a new security firm, my job will hang by a thread. The real fear is whether there’s anywhere else that would even consider hiring me at this age.\u201d<\/span><\/p>\n

Korea Pro<\/span><\/i> followed up with three Seoul-based human resources offices about jobs they had posted targeting senior citizens. All three said they were not seeking candidates over the age of 70, including for positions as security guards and on construction sites, citing health risks.<\/span><\/p>\n

The labor market for older Koreans is characterized by low wages, short-term contracts and a lack of opportunities for quality employment.\u00a0<\/span><\/p>\n

Many, like Jeon, find themselves in physically demanding roles, often after a career in a completely different field. The transition is not easy, but it’s made out of a pressing need to support oneself and contribute to their family’s welfare.<\/span><\/p>\n

As South Korea continues to grapple with one of the world’s fastest-aging populations and declining birth rates, the need for comprehensive policy reforms to improve the quality of jobs for older workers becomes increasingly urgent.\u00a0<\/span><\/p>\n

Edited by Alannah Hill\u00a0<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a>Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

In South Korea, elderly workers, legally defined as those aged 60 and up, are now projected to outnumber those in their 20s by the end of 2024, signaling a deep change in the country’s demographic structure.\u00a0 Currently, workers in their 20s constitute the largest segment of the workforce, accounting for 23%. 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