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LG Electronics to Implement Post-Retirement Re-employment Starting Next Year… The Standard for Continued Employment in Major Manufacturing Firms Has Changed

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →

[비즈한국] LG Electronics066570 will introduce a 'post-retirement re-employment' system starting next year. Following a wage and collective agreement on April 1, LG Electronics and its labor union decided to re-employ staff members with expertise and skilled technical capabilities for up to one year after retirement, taking into account the individual's desire and health status. The policy applies to both administrative and technical staff.

LG Electronics will introduce a 'post-retirement re-employment' system starting next year. LG Twin Towers in Yeouido, where LG Electronics is located. Photo = Reporter Park Eun-sook
LG Electronics will introduce a 'post-retirement re-employment' system starting next year. LG Twin Towers in Yeouido, where LG Electronics is located. Photo = Reporter Park Eun-sook

The trend for continued employment among major manufacturing companies is shifting away from 'blanket statutory retirement age extension' toward re-employment by job group or the expansion of expert tracks. Samsung Electronics005930 offers priority selection benefits for the 'Samsung Senior Track,' which allows top technical experts known as 'Samsung Masters' to continue working after retirement. SK Hynix000660 operates a technical expert track through its HE (Honored Engineer) system, allowing engineers to continue research and development without a retirement age. Hyundai Motor Company005380 has been operating a skilled worker re-employment system and, following a labor-management agreement last year, extended the re-employment period from the previous one year to a total of two years. POSCO has also been expanding its employment-extension-type systems.

This trend is closely linked to discussions on extending the retirement age. At a seminar on 'Measures to Vitalize Continued Employment After Retirement' held at the National Assembly on April 1, the business sector stated that gradual and selective continued employment, reflecting the characteristics of each industry and job group, is necessary. Some in the labor and civic society also suggested that simply extending the retirement age is not a complete solution, and that a method that combines post-retirement re-employment is necessary.

Behind this are the demand for skilled personnel in manufacturing fields and the burden of wage systems. In a report published in March, the Korea Enterprises Federation (KEF) stated that an era of continued employment for the elderly requires a redesign of compensation systems and human resources policies aligned with job roles and performance. The Ministry of Employment and Labor also operates a 'Continued Employment Incentive for the Elderly' program, and its 2026 guidebook states that the incentive payment period for eligible employees is up to three years from the date of initial continued employment.

Each company's design varies. LG Electronics introduced re-employment for up to one year for administrative and technical staff, while Samsung Electronics and SK Hynix focus more on utilizing experts, particularly core technical personnel. Hyundai Motor and POSCO have been operating or expanding production-site-focused skilled re-employment or employment-extension-type systems. It can be interpreted that rather than uniformly delaying the retirement age itself, a method of continuing experience and skills for a certain period in necessary job groups is spreading across major manufacturing sites.

The case of LG Electronics also shows that the discussion on continued employment is no longer just a debate for or against extending the retirement age. This is because the design of systems varies by company depending on how they solve practical tasks such as securing skilled personnel, transferring technology, ensuring production stability, and adjusting wage systems.

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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