Creating full-time jobs for young people is the main goal of an ongoing push to reform South Korea's labor market, the top economic policymaker said Wednesday.

Finance Minister Choi Kyung-hwan said that the landmark agreement reached over the weekend by the tripartite committee made up of representatives from labor, management and government, should not be seen as the end of a long, arduous journey.

"What has to be done in the future is more important," Choi said in a speech at a job fair in the port city of Busan, 453 kilometers southeast of Seoul. "The ultimate goal of change is to make it possible for companies to hire young people without worrying about more personnel outlays."

He claimed that the move to extend the retirement age to 60 starting in 2016 and rigid systems of employment and pay have undermined the ability of companies to hire new workers.

"Companies have either refrained from hiring new people or only recruit irregular workers," the policymaker said.

The latest agreement, however, could make it easier for companies to dismiss under-performing workers and alter the rule of employment, which may be disadvantageous to employees. Such changes could make it possible to hire new workers.

It also outlines measures that can tackle the non-regular workers issue and bolster unemployment benefits and the country's social security net.

According to the government and management, greater labor market flexibility can create more openings for young people, who have been hurt by a drop in the number of regular jobs.

The unemployment rate for people between the ages of 15 and 29 stood at 8 percent in August, much higher than the 3.4 percent for the country as a whole.

The deal, which needs to be approved by lawmakers, also aims to promote the government-initiated wage peak system, which calls for workers nearing retirement age to accept cuts in pay with the money saved by this arrangement to be used to hire new employees.

Choi, who doubles as deputy prime minister in charge of economic affairs, said the National Assembly should support the agreement by passing related laws, with management and labor taking steps to expand employment and labor market flexibility.

For its part, the government will invest resources to strengthen the country's social security net, he said.

The finance minister further said that the government is committed to supporting programs that link school studies with practical skills that can help young people secure jobs.

Choi's visit to Busan is part of the government's determined push to improve employment conditions for young people. (Yonhap)