South Korea is considering increasing financial incentives for small and medium-sized enterprises (SMEs) to address concerns surrounding mandatory retirement age extensions and potential negative impacts on youth employment. Currently, companies receive support for extending retirement, but proposals suggest increasing this to 500,000 won if they simultaneously increase hiring of young workers. This move aims to alleviate the financial burden on SMEs linked to higher personnel costs resulting from extended retirement ages. The government hopes to prevent a decline in youth employment opportunities as older workers remain in the workforce longer. The initiative seeks a balanced approach, promoting both the retention of experienced employees and the creation of jobs for younger generations. This policy responds to the growing demographic challenge of an aging population and a competitive job market. The final decision will likely focus on promoting inclusive growth and sustainable employment practices within SMEs.