Employment Minister: "Minimum Wage System Needs Improvement... Will Form Discussion Panel"

Discussion Body to Be Established After the 5th of Next Month Announced

Lee Jeong-sik, Minister of Employment and Labor, stated that "it is time to start discussions on improving the minimum wage system and its operation method" and announced plans to form a discussion body involving experts and others.

According to a statement read by Park Jong-pil, spokesperson for the Ministry of Employment and Labor, on the 15th, Minister Lee said, "The process of determining the national minimum wage is proceeding as if the labor and management of individual companies are negotiating wages, resulting in repetitive and exhausting conflicts and debates."

Lee Jeong-sik, Minister of Employment and Labor [Photo by Yonhap News]

The minister pointed out that "various opinions have been presented regarding the structure and criteria for determining the minimum wage," and emphasized the need to start improvement discussions reflecting these views. He also stated, "(After the final announcement of next year's minimum wage) we will form a discussion body involving experts and field representatives to prepare reasonable alternatives that comprehensively consider the difficulties faced by low-wage workers and small business owners," expressing plans for in-depth consideration.

Earlier, the Minimum Wage Commission decided on the 12th, through a vote by its members, to set next year's minimum wage at 10,030 KRW per hour. This represents a 1.7% increase compared to this year. During this process, issues regarding the method of determining the minimum wage were raised, and calls for improvement were made.

Minister Lee specified the plan to "form a discussion body involving experts and field representatives after the objection period, which is after the final announcement of the minimum wage on August 5." Next year's minimum wage is scheduled to be officially announced on August 5 after the objection period.