turnovers. In order for older workers to work longer, excessive seniority in the wage system should be reduced.567) The wage peak system is a system that exists only in Korea and Japan, where senioritybased wage is common. According to the Ministry of Employment and Labor, as of 2021, 55.5% of the businesses with more than 100 employees operate seniority-based wage system, and 70.3% of the businesses with more than 1,000 employees operate senioritybased wage system. The difference in wages between workers with less than one year of service and those with more than 30 years of service in Korea is 2.87 times, which is much higher than even Japan (2.27 times). Seniority-based system is hard to find in the US or Europe. Korea is expected to become a super-aged society by 2025, with the proportion of the population aged 65 or older reaching 20.5%, and it is reasonable to be needing an appropriate wage system. However, if wages of workers of a certain age are excessively reduced for the purpose of cost reduction or employee dismissal, while the wage peak system is only in name, it constitutes age discrimination and may violate workers’ rights. Therefore, considering the significance of this Supreme Court ruling, it is necessary to find a social consensus on the appropriate wage system and strive to supplement the system. 567) MOEL, Briefing on Direction for Implementing Labor Market Reform, Jun. 23, 2022. 229

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