Business Community Demands 'Freeze' on Next Year's Minimum Wage... Labor Sector Says "Must Raise by 18.9%"

On the afternoon of the 21st, at the 5th plenary meeting held in the Minimum Wage Commission meeting room at the Government Complex Sejong in Sejong City, Ryu Ki-jung, Executive Director of the Korea Employers Federation (left), a user committee member, and Lee Dong-ho, Secretary General of the Korean Confederation of Trade Unions, a labor committee member, are seated and conversing.
[Photo by Yonhap News]

The business sector has requested that next year's minimum wage be frozen at the same level as this year, 9,160 won.

On the afternoon of the 23rd, the employer representatives of the Minimum Wage Commission stated at the 6th plenary meeting held at the Government Sejong Complex that they want next year's minimum wage to be frozen at this year's level.

Ryu Ki-jung, Executive Director of the Korea Employers Federation and an employer representative, said, "The most important factor in wage determination is the payment capacity of companies," adding, "It is judged that it will be difficult to raise next year's minimum wage compared to this year."

He further explained, "The payment capacity of small business owners and micro and small enterprises is already facing a limit," and "Excessive demands for increases are equivalent to forcing small business owners and micro and small enterprises to close their doors."

Earlier, on the 21st, the labor representatives presented an initial demand at the plenary meeting, proposing an hourly wage of 10,890 won, which is 1,730 won (18.9%) higher than this year's minimum wage.

The labor representatives argued, "A realistic increase in the minimum wage is necessary as a policy measure to prevent future inequality and polarization following the recent economic crisis of low growth and high inflation."

The minimum wage deliberations proceed by narrowing the gap between the initial demands submitted by the labor and business sectors. Given the significant differences in positions between labor and management regarding the minimum wage, the nine public interest commissioners are expected to play a 'casting vote' role again this year.

The final deadline for announcing the minimum wage is August 5 each year, and considering the objection procedures, the deliberations must be completed by mid-next month at the latest.