Martial Arts "Export Slump... Regret Raising Minimum Wage When It Should Be Cut"

Jeong Manki, Vice Chairman of Muhyeop, Comments
Next Year's Minimum Wage 9,860 Won per Hour, Up 2.5%
"Exports to Recover Only in the First Half of Next Year"

Jung Manki, Vice Chairman of the Korea International Trade Association, expressed deep regret over the Minimum Wage Commission's decision on the 19th at around 6 a.m. to raise next year's minimum wage by 2.5% compared to this year.

The Minimum Wage Commission set next year's minimum wage at 9,860 KRW per hour and 2,060,740 KRW per month (based on 209 hours). This is a 2.5% increase from this year's 9,620 KRW per hour (2,010,580 KRW per month). Although it did not reach the '10,000 KRW minimum wage era,' it is true that the cost burden on companies has increased amid sluggish exports.

Park Junsik, Chairman of the Minimum Wage Commission, leaving the meeting room after the 15th plenary session held in the early morning of the 19th at the Minimum Wage Commission meeting room in the Government Complex Sejong, Sejong City.
[Photo by Yonhap News]

Vice Chairman Jung stated, "75% of Korean export companies feel the need to freeze or reduce next year's minimum wage," and expressed "deep regret over this increase decision."

He diagnosed that export recovery will not be easy for the time being. He said, "Exports are expected to recover only after the first half of next year," and added, "This increase is feared to not only weaken the competitiveness of Korean products but also lead to reduced new hiring by companies, expanded overseas investment, and promotion of automation, resulting in employment reduction."

He pointed out problems in the minimum wage decision process. Vice Chairman Jung said, "The realities of ordinary workers and most companies are not properly reflected, and regional differences in living costs are not considered," and added, "Measures to strengthen representation in the wage determination process and to apply differentiated minimum wages by region should be promptly prepared as institutional improvements."