South Korea's public corporations should adopt a wage peak system by the end of August in order to help more young people find jobs, the country's top economic policymaker said Wednesday.

Chairing a meeting of some 40 government ministers and heads of state-run corporations, Finance Minister Choi Kyung-hwan said the implementation of the wage system is critical for the future of the country.

"Ministers and heads of public corporations must take a resolute stance on this matter and push forward wage peak measures that can create more job opportunities for young people," the finance minister told the meeting in Seoul.

"The move does not entail a greater burden on taxpayers and can lead to young people finding good jobs that can benefit all sides."

The guidelines for wage peak measures unveiled by the government in May call for lowering the wages of people nearing retirement age and using the money saved to hire young workers.

South Korea's mandatory retirement age will be pushed up to 60 in 2016 from 58, which is feared to raise the personnel cost for companies. Such a development could compel companies not to hire new employees in the next few years, which would have serious consequences for the job market.

Policymakers said that if all public sector companies adopt the wage peak system, some 8,000 more jobs will be created in the 2016-2017 period.

Eventually, the government wants private companies to also adopt the wage peak system.

The finance ministry said of the 316 public sector corporations and agencies, 215 are in the process of ironing out wage peak arrangements, with 101 having finalized plans. Of the 101, 11 have already completed the process by reaching agreements with workers and getting approval from their boards. These corporations are in the process of hiring 200 young workers

Those that have completed the process include such companies as Korea Southern Power Co., Korea Power Exchange, Korea Investment Corp. and the Korea Appraisal Board.

The ministry said it will hold regular meetings with public corporations in the process of fully adopting the new wage system and help them overcome potential hurdles.

At the meeting, Korea Electric Power Corp. announced a so-called job stepping stone project aimed at supporting internship programs at small and medium partner companies. The project, it said, can allow partner companies to hire some 600 new qualified workers in 2016 and 2017 by defraying training-related outlays.

The government said other public companies can organize similar programs which can improve employment conditions. (Yonhap)