[Asia Economy Reporter Dongwoo Lee] With next year's minimum wage decided at 8,720 won, a 1.5% increase from this year, the Federation of Korean Industries (FKI) stated that the increase could be a burden for business owners, including small business operators.
On the 14th, the FKI commented, "Many economic agents hoped for at least a 'freeze' on next year's minimum wage to overcome the economic difficulties caused by the novel coronavirus (COVID-19), so we regret that it was ultimately decided to increase by 1.5% to 8,720 won."
They added, "Considering the severe economic hardship and the rapid increase rate of 32.8% over the past three years, the additional 1.5% increase in the minimum wage will act as another burden not only for numerous small business owners and self-employed struggling to survive but also for business owners."
The FKI also expressed concern that this wage increase decision could inevitably worsen employment difficulties and job insecurity for youth, temporary, and daily workers.
The FKI stated, "We hope that efforts will be made to mitigate the side effects of the rapid minimum wage increase through measures such as differentiated application of the minimum wage and expansion of the minimum wage calculation scope, while also focusing on inducing cooperation among all economic agents to overcome the current economic difficulties."
Meanwhile, the Minimum Wage Commission, a social dialogue body that deliberates and decides on the minimum wage, held its 9th plenary meeting early this morning at the Government Sejong Complex and resolved the minimum wage for next year at 8,720 won per hour. This amount is 130 won (1.5%) higher than this year's minimum wage of 8,590 won.
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