South Korea’s top court has ruled that the maximum working age of a manual worker should be upped from current 60 to 65, a move that may lead to an increase in the country’s retirement age.

The Supreme Court on Thursday overturned a lower court ruling and ordered to re-calculate compensation of damages for manual workers who either pass away or lose manpower based on the assumption that they would be able to work until they are 65 years old, instead of 60 years old.

The Seoul High Court initially ruled 254.16 million won ($225,875) in compensation to a family with surname Park who filed a suit against a swimming pool operator in August 2015, demanding 493.54 million won in compensation after their four-year-old son drowned in the pool.

The first and second trials calculated compensation based on the empirical rule that a manual worker is able to work until he or she turns 60 years old. The rule was in line with the Supreme Court’s decision 30 years ago when it ruled to increase the maximum working age from 55 years old to 60 in December 1989, which has become the country’s retirement age since then.

The top court, however, overturned the lower court ruling, citing the dramatic economic and social changes in the last three decades, such as the aging society and the growing average lifespan.

The latest ruling is expected to create a stir in various business sectors in the country, especially in the insurance because the higher the maximum working age, the more the insurance payment to the policyholders. Insurance companies may up their premium payments to cover the loss.

The ruling is also expected to lead to discussions in the country that Korea’s retirement age currently set at over 60 years old should be increased.

By Chae Jong-won and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]