Core Viewpoint - The International Monetary Fund (IMF) recommends that South Korea extend the statutory retirement age and reform the national pension system to address issues related to an aging population and the labor market, ensuring long-term economic stability and sustainability [1] Group 1: Retirement Age and Pension System - The IMF suggests raising the retirement age from 60 to 65 years and delaying the pension eligibility age to 68 years [1] - The employment rates for individuals aged 65 and above, as well as those aged 70 and above, have reached twice and three times the OECD average, respectively [1] Group 2: Wage Structure Reform - The IMF advises modifying South Korea's rigid wage structure to align wage growth with productivity and employee capabilities, rather than simply increasing wages based on years of service [1]

Group 1 - South Korea's fertility rate has dropped to a record low of 0.72 in 2023, the lowest globally and less than half of the OECD average of 1.6 [1] - The aging population in South Korea is increasing at a faster rate than any other developed country, with the proportion of people aged 65 and older expected to exceed 40% by 2050, up from 17.9% in 2023 [1] - The elderly dependency ratio is projected to rise from 28% in 2023 to 44% by 2050, and could reach 117% by 2082, making it the highest among OECD countries [1] Group 2 - South Korea has the highest elderly poverty rate in the OECD, with 40% of older adults living below the poverty line, attributed to a weak national pension system [2] - Only 37% of South Koreans aged 55 to 64 are still employed, with many exiting the labor market prematurely, averaging retirement at 49.4 years old [2] - Companies in South Korea often prefer to lay off older employees due to the financial burden of higher salaries for long-tenured workers, leading to subtle layoffs [2] Group 3 - Japan has implemented various policies to encourage continued employment, including raising the mandatory retirement age and providing employment options for older workers [3] - By 2023, Japan's employment rate for those in their 60s reached 63% due to these reforms [3] - Despite awareness of the need for labor market reforms in South Korea, achieving such changes is challenging and requires a consistent reform approach [3]