Office of the President: "Next Year's Minimum Wage Agreed by Labor, Management, and Public Interest for First Time in 17 Years... Highly Significant and Will Be Fully Respected"

The minimum hourly wage for next year set at 10,320 won
First labor-management-public interest agreement in 17 years
Decision made through social dialogue without a vote

The Office of the President stated on the 11th that the minimum hourly wage for next year, set at 10,320 won?an increase of 290 won (2.9%) from this year?"is significant in that it was decided through an agreement among labor, management, and public interest members without a vote for the first time in 17 years since 2008."

Yonhap News

In a statement released that day, the Office of the President evaluated, "This decision was made by comprehensively considering objective statistics such as the inflation rate, as well as the circumstances of vulnerable workers and small business owners." The minimum wage for next year, when converted to a monthly salary, is 2,156,880 won, which is 60,160 won higher than this year.

The Office of the President further stated, "Since the first minimum wage decision under the Lee Jaemyung administration was made through mutual understanding and concessions between labor and management, the government will respect this to the fullest extent," adding, "We will actively promote and simultaneously provide guidance and supervision to ensure the minimum wage is properly observed in the field."

The Minimum Wage Commission held its 12th plenary session at the Government Complex Sejong on the previous day (the 10th) and decided on next year's minimum wage at 10,320 won. This is based on 209 hours per month, assuming an 8-hour workday, five days a week, including paid weekly holidays.

Lee Injae, chairperson of the Minimum Wage Commission, commented, "This agreement will be remembered as an achievement that demonstrates our society's capacity to coordinate differences and resolve conflicts through social dialogue." Kwon Soonwon, public interest member and professor at Sookmyung Women's University School of Business, remarked, "The determination to patiently persuade both labor and management until the very end made it possible to reach today's agreement."

This minimum wage decision marks the first labor-management-public interest agreement in 17 years since 2008 (when the 2009 minimum wage was agreed upon). Since the introduction of the minimum wage system in 1988, this is the eighth time the minimum wage has been set through a tripartite agreement. This year as well, there were significant differences between labor and management, resulting in the legal deliberation deadline (June 29) being missed. However, the unusual outcome of reaching an agreement has drawn considerable attention.