Another 'Passing' by Business Circles... Next Year's Minimum Wage Set at 9,160 Won 'Final Nail'

Ministry of Employment Official Gazette Publication... Management Sector's Objections Not Accepted

[Sejong=Asia Economy Reporter Moon Chaeseok] Next year's minimum wage has been finalized at 9,160 won per hour, a 5.1% increase from this year, as decided by the Minimum Wage Commission. The business community's objections were not accepted this time either.

On the 5th, the Ministry of Employment and Labor announced in the official gazette that the minimum wage for next year has been set at 9,160 won. It will be applied from January 1st of next year. The monthly minimum wage, calculated based on 209 working hours, is also noted as 1,914,440 won. It was announced that this applies equally to all workplaces regardless of industry. Previously, the Minimum Wage Commission decided on the 9,160 won minimum wage on the 12th of last month. This amount is 440 won (5.1%) higher than this year's minimum wage of 8,720 won.

According to the Minimum Wage Act, once the Minimum Wage Commission submits the decided minimum wage to the Ministry of Employment and Labor, the ministry finalizes and announces it by August 5th. Labor and management organizations can raise objections before the ministry's announcement, and if the ministry finds their reasons valid, it can request a reconsideration from the Minimum Wage Commission.

On the 12th of last month, nine business representatives attending the 9th plenary meeting of the Minimum Wage Commission abruptly left the negotiation room at the Government Sejong Complex at 11:41 PM and held a press conference. The fourth person from the left is Ryu Ki-jeong, Executive Director of the Korea Employers Federation, who acted as the chairperson.
(Photo by Moon Chae-seok)

Since the introduction of the minimum wage system in Korea in 1988, there has never been a reconsideration of the minimum wage proposal. Regarding next year's minimum wage, employer organizations such as the Korea Employers Federation (KEF), Korea Federation of SMEs (KOSME), and Korea Federation of Micro Enterprise expressed objections. The business community strongly opposed by storming out of the 9th plenary meeting held at 11:41 PM on the 12th of last month, just before the decision, stating they would raise objections and requested reconsideration, but their request was not accepted.

On the 4th, KEF expressed concern over the Ministry of Employment and Labor's refusal to accept the objections, stating that "the 5.1% increase in the minimum wage is a level that small and micro enterprises and small business owners, already at their limits, cannot possibly bear."