Business Community: "Minimum Wage Agreement Reached to Overcome Current Complex Crisis"

Korea Employers Federation:
"This decision is a result of compromise and cooperation"
Urges government for swift economic recovery measures

On the 10th, following the decision on next year's minimum wage, the Korea Employers Federation, representing the user members of the Minimum Wage Commission, stated, "This decision is the result of an agreement reached with a shared understanding that, in order to overcome the current complex crisis, labor and management need to make concessions and coordinate their positions, rather than repeating past conflicts."

Ryu Kijeong, executive director of the Korea Employers Federation and a user member of the Minimum Wage Commission (left), is speaking at the 12th plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong on the 10th. Photo by Yonhap News

On this day, the Korea Employers Federation made this statement after the Minimum Wage Commission held its 12th plenary meeting at the Government Complex Sejong and decided to set next year's minimum wage at 10,320 won, a 2.9% increase compared to this year.

The Federation explained, "The business community has consistently maintained that a freeze in the minimum wage is necessary, taking into account the management difficulties faced by small and medium-sized enterprises and small business owners." It added, "However, after much deliberation, we agreed to this minimum wage decision, considering the reality that the prolonged domestic economic downturn is exacerbating difficulties across the entire livelihood economy."

It continued, "During the process of reaching an agreement, there was considerable friction due to strong opposition from members of the Korea Federation of Micro Enterprises, but ultimately, a grand compromise was achieved." The Federation added, "This was not an easy decision for the business community, and we accept the resulting burden and responsibility with gravity."

Furthermore, the Federation stated, "The business community hopes this agreement will serve as a starting point for our society to move beyond conflict toward unity and harmony." It also called on the government to "use this decision as an opportunity to more swiftly implement policies for economic recovery and stabilization of livelihoods, and to provide careful policy support and supplementary measures to ensure that the minimum wage increase does not lead to intensified management difficulties or job losses."