"Can't Find Part-Time Workers" Small Business Owners Urge Enactment of Workforce Support Act and Minimum Wage Freeze

Sogongyeon Discusses Current Issues with Ministry of SMEs... Holds Policy Sharing Meeting
Chairman Oh "Job Losses if Minimum Wage Rises Next Year"
Minister Lee Young "Difficulties Will Increase in Food and Accommodation Sectors"

O Sehee, President of the Small Business Association./Photo by Hyunmin Kim kimhyun81@

The small business sector met with Lee Young, Minister of the Ministry of SMEs and Startups, to urge the freeze of the minimum wage, sector-specific application, and the enactment of the 'Small Business Workforce Support Act.'

On the 7th, Oh Se-hee, president of the Korea Federation of Small and Medium Business, expressed the difficulties faced by small business owners, focusing on the minimum wage, at a policy meeting held at the federation's office in Yeouido, Seoul.

Representatives from various industry associations also participated in the meeting to convey the challenges small business owners face on the ground and proposed measures to reduce the burden of public utility costs such as minimum wage and electricity fees.

The Minimum Wage Commission has been discussing the appropriate minimum wage level to be applied next year since April. The commission, composed of labor, management, and government representatives, is scheduled to hold its 3rd plenary meeting tomorrow (8th) at the Government Complex Sejong.

President Oh stated, "We are pushed to the limit to operate alone due to rising costs and declining sales," advocating for a freeze on the minimum wage. She explained that while the minimum wage increased by 48.7% from 2017 to 2023, reaching 9,620 won, the number of one-person self-employed businesses increased by 280,000.

She also pointed out that the rate of workers earning below the minimum wage varies greatly by industry: 36.6% in agriculture, forestry, and fisheries; 31.2% in accommodation and food services; and 2.8% in scientific and technical services, demanding sector-specific application.

She expressed concern, saying, "Considering the payment capacity and business conditions of small business owners, if the minimum wage is raised this year, job losses are inevitable."

Minimum Wage Reference Photo / Photo by Dongju Yoon doso7@

Additionally, the industry requested the Ministry of SMEs and Startups to enact the Small Business Workforce Support Act to alleviate the labor shortage.

According to the '2023 Business Outlook Survey' conducted by the federation, 28% of respondents cited 'labor costs and securing manpower' as difficulties in running their businesses, and 34% identified 'preparing workforce support measures for small business owners' as a key task.

President Oh said, "In the past, job postings would attract applicants competing on a first-come, first-served basis, but now recruitment is only possible if all conditions such as industry, location, and hourly wage are met," adding, "Unlike medium-sized enterprises, there is no law supporting small business workforce, limiting assistance."

She appealed, "Please join us in enacting the Small Business Workforce Support Act to stabilize employment through comprehensive and systematic support policies for small business workforce management, contributing to the national economy and development."

Minister Lee empathized with the difficulties faced by small business owners and expressed the need for sector-specific application of the minimum wage. He shared a personal story, saying, "My mother was also a small business owner, and I experienced situations where my three daughters took turns opening, cleaning, and closing the business because 'you can't operate at a loss.'"

He continued, "Reading comments on minimum wage articles, people say, 'Do they want to use people without paying them?' In this worst labor shortage, even if you want to pay extra to hire people, some have to close their doors to afford it."

Minister Lee said, "If the minimum wage is decided without reflecting the voices from the small business field, industries with weak payment capacity like food and accommodation will face increased difficulties," encouraging, "Let's unite to find solutions and explore how to communicate them together."