Fifth Revised Minimum Wage Proposals... Gap Narrows from 1,150 to 1,010 Won (Update)

The Minimum Wage Commission Holds Its 9th Plenary Meeting

As labor and management continue their tug-of-war to determine next year's minimum wage, the gap between their respective proposals has narrowed to 1,010 won.

The 9th plenary meeting of the Minimum Wage Commission held on the 3rd at the Government Complex Sejong. Photo by Yonhap News

The Minimum Wage Commission held its 9th plenary meeting on the 3rd at the Government Complex Sejong. With the legal deadline for minimum wage deliberations having passed on June 29, the commission convened an additional session just two days after the 8th plenary meeting on July 1, in an effort to further narrow the gap between labor and management.

On this day, labor representatives submitted their fifth revised proposal, requesting a minimum wage of 11,140 won for next year, which is an 11.1% increase from this year’s rate of 10,030 won. This is 3.1% lower than their initial proposal of 11,500 won. Management, for their part, presented a fifth revised proposal of 10,130 won, which is a 1.0% increase from this year. Previously, management had insisted that next year’s minimum wage should remain at the current level.

As a result, the gap between labor and management’s minimum wage proposals for next year has narrowed to 1,010 won. Previously, on June 26, the two sides reduced the gap from 1,440 won to 1,390 won through their first and second revised proposals. On July 1, the third and fourth revised proposals further narrowed the difference to 1,270 won and 1,150 won, respectively.

Ryu Kijeong, Executive Managing Director of the Korea Employers Federation, stated at the meeting, "The minimum wage is already high, and with the worsening economic situation, any increase to an unsustainable level next year would not only seriously threaten the survival of small and medium-sized enterprises and small business owners, but could also place an additional burden on the national economy as a whole." He called for restraint in raising the minimum wage.

On the other hand, Ryu Giseop, Secretary-General of the Federation of Korean Trade Unions, explained the need to raise the minimum wage, saying, "In Korea, which is a high-inflation country, the living costs for low-wage workers have long exceeded their limits." He emphasized, "Without a bold increase in the minimum wage, it will not be possible to continuously stimulate the domestic economy."