Moon Sung-hyun "Differential Minimum Wage Application Can Be Discussed as an Extension of Sectoral Wages"

Moon Sung-hyun Chairman "Future Minimum Wage Will Stabilize at Current Level"

Moon Sung-hyun, Chairman of the Economic, Social and Labor Council, is giving a greeting at the tripartite agreement on the improvement of the worker representative system held at the Economic, Social and Labor Council in Jongno-gu, Seoul on the 16th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Han Jinju] Moon Sung-hyun, chairman of the Economic, Social and Labor Council, stated that the plan to apply differentiated minimum wages by industry could be discussed as an extension of sectoral wages, unlike in the past.

At the comprehensive audit of the Ministry of Employment and Labor by the National Assembly's Environment and Labor Committee on the 26th, Chairman Moon said, "In the past, because wages in our country were very low, we could not discuss differentiated application by industry or region, but once stabilized, it could be discussed as an extension of sectoral wages."

Sectoral wages refer to wages determined through sectoral negotiations and applied by industry. In domestic labor-management relations centered on company-level unions, a sectoral negotiation system has not been properly established.

The differentiated application of minimum wages has been a persistent demand from the business community, citing the labor cost burden on small business owners. In Korea, there was a precedent in 1988 where minimum wages were applied differently by setting two industry groups, but since then, a single wage has been applied across all industries.

Regarding the future minimum wage, Chairman Moon predicted, "Based on the current situation, the overall wage increase for workers in our country is expected to fluctuate around the inflation rate," adding, "Although the minimum wage is currently below 9,000 won, it will stabilize to some extent at the current level." The minimum wage for next year is 8,720 won per hour.

Chairman Moon also emphasized, "I am almost the only one in the current government who says regarding the minimum wage, 'Let the employer be able to pay and the worker receive it,'" adding, "I mean creating a 'willingness to pay' atmosphere."

However, Chairman Moon's remarks differ from the government's position, which opposes differentiated application of the minimum wage. His statement that the minimum wage will stabilize at the current level may also provoke opposition from labor groups.