SME Sector: "Minimum Wage Surpassing 10,000 Won, Irresponsible Decision Ignoring Reality"

Next year's minimum wage has been decided at 10,030 won, a 1.7% increase from this year, but the small and medium-sized enterprises (SME) sector expressed regret, calling it an "irresponsible decision that ignores reality."

The Korea Federation of SMEs stated in a press release on the 12th, "Although 1.7% is the second-lowest minimum wage increase rate in history, considering that more than half of SMEs cannot cover loan interest with operating profits and that bankruptcies and closures are rampant in the current economic situation, it is very disappointing that the 2025 minimum wage was not frozen."

They continued, "During the deliberation period, the SME sector supplemented previous criticisms that the differentiated application plan was not specific," adding, "Despite presenting an improved proposal, the Minimum Wage Commission once again insisted on a single minimum wage system, which we believe is an irresponsible decision that ignores reality."

Previously, SME and small business organizations requested differentiated application by industry for at least three sectors?convenience stores, restaurants, and taxi transportation?but this was not accepted.

The Korea Federation of SMEs argued, "Our minimum wage is high compared to OECD and G7 countries, and in some industries, it is at an unbearable level, as confirmed by various statistics," adding, "In vulnerable industries subject to differentiated application, SMEs and small business owners are experiencing declining sales and increasing costs, worsening profitability. Under these circumstances, the current high minimum wage is impossible to comply with, forcing these vulnerable business owners to operate their businesses at the risk of becoming lawbreakers."

They further emphasized, "Differentiated application of the minimum wage considering the payment capacity by industry is absolutely necessary."

The Korea Federation of SMEs also stated, "Just as the differentiated application research report conducted by the Ministry of Employment and Labor last year helped advance discussions during this year's minimum wage differentiated application deliberation process, the government must provide objective and reasonable basic statistical data through additional research to facilitate in-depth future discussions on differentiated application."