Press Conference Held by Small Business Association on the 18th
Also Advocated for the Abolition of Weekly Holiday Allowance
As discussions are underway to decide next year's minimum wage, small business owners have called for the ‘application of differentiated rates by industry’ and the ‘abolition of weekly holiday pay’.
On the afternoon of June 21 last year, members of the Korea Federation of Small and Medium Business held up related hand placards at a rally near Seoul National Assembly Station calling for a freeze on the minimum wage. [Photo by Yonhap News]
The Korea Federation of Small and Medium Business (KFSB) held a ‘2025 Minimum Wage Small Business Owners' Position Announcement Press Conference’ on the 18th at the KFSB main conference room in Yeouido, Seoul.
Yoo Ki-jun, acting president of KFSB, stated at the press conference, “The minimum wage has risen by more than 50%, from 6,470 won in 2017 to 9,860 won in 2024. During the same period, the number of self-employed with employees decreased by 170,000, from 1.58 million in 2017 to 1.41 million in 2023, while the number of self-employed without employees increased by 220,000, from 4.15 million to 4.37 million, pushing small business owners to the brink.”
He continued, “There is a growing demand for differentiated application in industries such as convenience stores, coffee shops, and PC bangs, where low-skilled beginners without special skills or related experience can easily enter with a low hurdle and labor productivity is low. We must implement differentiated application by industry to provide workers with opportunities to gain social experience while reducing labor cost burdens to maintain employment.”
Acting President Yoo also pointed out, “Currently, the minimum wage is decided through a private-led system involving employers, workers, and public interest commissioners, but decisions are being made according to the intentions of the public interest commissioners who hold the casting vote. If the goal is to guarantee workers' livelihoods through the minimum wage, the government should participate in the minimum wage decision-making process and establish effective support measures for small business employment to alleviate their hardships.”
At the press conference, small business owners from various industries such as convenience stores, cafes, PC bangs, restaurants, and hair salons attended. They raised their voices regarding industry-specific demands related to the minimum wage.
Seo Ji-hoon, a cafe owner, said, “Until about five years ago, I employed part-time workers for an average of 200 hours per month, but now I can only employ three people for less than 15 hours a week, totaling 120 hours. Weekly holiday pay, which imposes management difficulties on small business owners and forces workers into fragmented shifts, must be abolished as soon as possible.”
Kim Sung-soo, a PC bang owner, stated, “Many owners are working 10 to 16 hours without days off due to minimum wage increases. Workers already have many legal and institutional protections, but it is hard to find protective measures for self-employed people, who are a key part of economic activity. The self-employed are not the dominant party but members of our economy who need protection as well.”
Kim Sun-nyeo, a hair salon owner, said, “The beauty industry has seen a surge in one-person businesses due to the increased burden of employment caused by rapid minimum wage hikes. Even after obtaining certificates and licenses, it usually takes more than three years to become a skilled beautician. Considering that work and training are combined during this period, employment support should be provided through the establishment of vocational competency development funds.”
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