Companies receiving government support for senior-friendly job programs have counted highly paid executives toward their hiring targets, data showed. Lawmakers say the criteria for recognizing such hires should be tightened and subsidies clawed back so the program serves its stated purpose of creating and preserving jobs for older workers.
An analysis of participant data for the senior-friendly company and institution program, obtained on the 14th through the office of Rep. Kim Yoon of the Democratic Party of Korea, a member of the National Assembly's Health and Welfare Committee, found that 10 participants had average monthly pay of 10 million won ($7,000) or more through July this year. The highest average monthly pay reached 20 million won. There were no participants at that pay level in 2021 or 2022, but five were counted toward hiring records in 2023, 17 in 2024 and nine in 2025.
The senior-friendly jobs program aims to encourage the creation of quality jobs by supporting companies that draw on the skills of people aged 60 and over. As of this year, companies hiring older workers can receive up to 300 million won for startup costs and other expenses, while senior-friendly companies and institutions can receive up to 200 million won for improvements to working conditions and similar items. Recipients must meet hiring targets set out in their contracts and face measures including clawbacks of subsidies if they fall short.
MegaGen Implant is a prominent case. The company, which has taken part in the program since 2021, registered a vice president as part of its senior hiring record every year from 2023 through this year. The executive's average monthly pay was 18.61 million won in 2023, 19.07 million won in 2024 and 18.88 million won last year, rising to 20 million won this year.
In June this year, a managing director with average monthly pay of 15.83 million won was also added as a participant, placing two highly paid executives in the senior jobs record at the same time. Under the company's performance contract, total subsidy support comes to 125 million won.
Whether executives are included has a decisive effect on meeting hiring targets. MegaGen Implant posted a hiring target of five and a final record of five in 2023, one of whom was the vice president. Excluding the vice president, the record falls to four, one short of the target.
Highly paid professionals outside the executive ranks were also included. In one case, a hospital in North Gyeongsang Province registered two doctors with average monthly pay of 20 million won as participants this year.
"Senior posts such as vice presidents and managing directors earning 10 million to 20 million won a month are being recognized as senior hiring records, and the government has not even properly determined whether they have special relationships with the chief executive," Kim said. "The criteria for recognizing hiring records in performance contracts must be tightened and the oversight and inspection system overhauled so that government subsidies translate into real job creation for older workers."