Next Year's Minimum Wage Likely Set at 8,720 Won... Labor Representatives Walk Out (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The public interest members of the Minimum Wage Commission proposed an arbitration plan setting next year's minimum wage at 8,720 won, a 1.5% (130 won) increase from this year. This is the lowest increase rate since the introduction of the minimum wage system.

On the 14th, the Minimum Wage Commission held its 9th plenary meeting at the Government Sejong Complex to conduct final discussions on the level of next year's minimum wage. As it became difficult to narrow the gap between labor and management, the labor side requested the public interest members to "propose a single plan." In response, the public interest members submitted 8,720 won, a 1.5% increase from this year's minimum wage.

Five worker representatives recommended by the Korean Confederation of Trade Unions (KCTU) said, "We cannot accept the public interest members' proposal," and collectively left the meeting room. Following the refusal of the KCTU-recommended members, after the Democratic Labor Union, all labor representatives left the meeting, making it highly likely that next year's minimum wage will be set at 8,720 won.

Lee Dong-ho, Secretary General of the Korean Confederation of Trade Unions, said, "The public interest members said there would be no increase above 1.5%," adding, "There was no room for further negotiation. The Korean Confederation of Trade Unions will conclude this year's minimum wage negotiations by walking out."