Minimum Wage Increase... KCCI "Decision Ignores Reality, Difficult to Agree"

"Decision Ignoring Small and Micro Enterprises and Small Business Owners"
"Government Must Develop Sector-Specific Application Plans"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) expressed its position regarding the 5.0% increase in next year's minimum wage compared to this year, stating that "this decision ignores the reality of small and micro enterprises and small business owners who are struggling to survive amid the triple hardships of the recent COVID-19 aftermath, high inflation, high interest rates, and high exchange rates."

On the 30th, immediately after the Minimum Wage Commission decided on a minimum wage of 9,620 KRW per hour for next year, KEF stated in a press release, "This increase was decided after all employer representatives expressed regret and walked out in response to the mediation proposal presented by the public interest committee members."

They continued, "Considering comprehensively the minimum wage level that has risen more than four times faster than inflation over the past five years, the payment capacity of small and micro enterprises and small business owners who have reached their limits, the decision factors exemplified by law, and the recent complex economic crisis, we clearly state that it is difficult to agree with this 5.0% increase rate."

KEF added, "The necessity for differentiated application by industry has become even clearer due to this decision, which did not even consider the minimum wage acceptance capacity of some industries that have reached their limits," and argued, "The government should promptly prepare practical measures for differentiated application by industry, and differentiated application of the minimum wage must be implemented during next year's review."

They further stated, "The business community expresses concern about this high-rate increase in the minimum wage, and the government should actively seek measures to mitigate the side effects on the national economy that may result from this."