Labor-Management Minimum Wage Gap Narrows
from 1,010 Won to 870 Won
As labor and management continue their tug-of-war to determine next year’s minimum wage, the gap between the two sides’ proposed wages has narrowed from 1,010 won to 870 won. An additional meeting is scheduled for July 8 to further reduce the difference between the two parties.
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 July 3 at the Government Complex Sejong. With the statutory review deadline for the minimum wage having passed on June 29, the commission convened an additional session just two days after the 8th plenary meeting on July 1, aiming to narrow the gap between labor and management.
The labor side presented its 6th revised proposal following the 5th (11,140 won), demanding a 9.9% increase from this year’s minimum wage (10,030 won) to 11,020 won for next year. This is 4.2% lower than their initial proposal of 11,500 won.
The management side also submitted its 6th revised proposal following the 5th (10,130 won), proposing a minimum wage of 10,150 won for next year, which is a 1.2% increase from this year. Previously, management had put forward an initial proposal to keep next year’s minimum wage at the current year’s level.
As a result, the gap between labor and management’s proposed minimum wages for next year has narrowed from 1,010 won to 870 won. Previously, on June 26, both sides submitted their first and second revised proposals, reducing the gap from 1,440 won to 1,390 won. On July 1, the third and fourth revised proposals further reduced the gap 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 conditions, raising the minimum wage to an unaffordable level next year could severely threaten the survival of small and medium-sized enterprises and small business owners, as well as place an additional burden on the national economy as a whole,” urging restraint in increasing the minimum wage.
On the other hand, Ryu Kiseop, Secretary-General of the Federation of Korean Trade Unions, explained the need for a minimum wage increase, saying, “In Korea, which is a high-inflation country, the cost of living for low-wage workers has long exceeded its limits.” He emphasized, “Without a bold increase in the minimum wage, it will not be possible to sustainably boost the domestic economy.”
To further narrow the gap between labor and management, the Minimum Wage Commission plans to hold its 10th plenary meeting on July 8 at the Government Complex Sejong.
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