• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.4
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• pp.224-234
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• 2017

This paper compares the realities of the salary Peak Policy's status and management processes in Korea and Japan, with the aim of determining the development direction for Korea's salary Peak Policy's. Unlike Japan, which successfully achieved close cooperation between government, firms and workers in implementing the Retirement Age Extension Type salary Peak Policy, Korea experienced many problems due to lack of preparation. In order to rationally develop the salary Peak Policy, the government, firms, and workers must cooperate to increase the policy's efficiency via the following steps. First, gradually increase the proportion of retirement age extension. Second, career development that takes into account the various employment types, flexible working hours and aged workers. Third, development of training programs for senior citizen workers, as well as increasing support for changing of jobs and startups. Fourth, expansion of re-employment after retirement age and ways to make use of the skilled labor. Fifth, increasing work efficiency through bonuses and work evaluation that is specialized for aged workers. This paper argues that such measures are necessary for the co-existence of firms and workers, as well as for improving employment stability and labor market flexibility.