Sogongyeon "Next Year's Minimum Wage Increase Rate, Regrettable but Acceptable"

On the early morning of the 14th, the press is attentively listening to the briefing on the results of the 9th Minimum Wage Commission plenary meeting held at the Ministry of Employment and Labor in the Government Complex Sejong, Sejong City. On that day, the plenary meeting was put to a vote based on the proposal submitted by the public interest members after the collective walkout of the worker representatives. The minimum wage for next year, adopted with 9 votes in favor and 7 against, was finally decided at 8,720 KRW per hour. Photo by Yonhap News Agency

[Asia Economy Reporter Moon Hyewon] The Korea Federation of Micro Enterprises (hereinafter referred to as KFME) announced on the 14th that it will "regretfully accept" the decision to raise next year's minimum wage by 1.5%.

On the 14th, KFME held a press conference at the Korea Federation of SMEs in Yeouido, Seoul, stating, "Although there is some regret over the minimum wage committee's decision to set the increase rate after intense discussions, we express our position to 'accept' it."

However, KFME added, "Considering that the minimum wage has risen by nearly 50% over the past three years including the mandatory weekly holiday allowance, small business owners who have been hit hard by the COVID-19 pandemic are finding it difficult to endure even this level of increase. We urge the government to immediately establish comprehensive supplementary measures for next year's minimum wage increase, and we will reorganize our internal ranks to gather and convey the opinions of small business owners to the government and the National Assembly."

At the 9th plenary meeting held on the same day, the Minimum Wage Commission finalized next year's minimum wage at 8,720 won, an increase of 1.5% (130 won) from this year's 8,590 won. This is the lowest increase rate since the minimum wage system was introduced in 1988.