Economic Organizations Call Minimum Wage Agreement a "Starting Point for Integration and Harmony" (Comprehensive)

KEF: "Result of Labor and Management Making Concessions and Reaching Coordination"
KCCI: "Highly Values the Agreement Decision"
Next Year's Minimum Wage Set at 10,320 Won per Hour

Economic organizations have welcomed the decision to raise next year's minimum wage, which was reached through labor-management agreement for the first time in 17 years.

The Korea Employers Federation (KEF), which participated in the Minimum Wage Commission as the employer representative, stated its position on the minimum wage decision on July 11, saying, "The business community hopes that this agreement will serve as a starting point for our society to move beyond conflict toward integration and harmony."

The Minimum Wage Commission, a tripartite social dialogue body consisting of labor, management, and public interest representatives that deliberates and decides the minimum wage, held its 12th plenary meeting at the Government Complex Sejong the previous day and set next year's minimum wage at 10,320 won per hour, a 2.9% increase from this year. While this rate of increase is higher than this year's 1.7% or 2021's 1.5%, it remains at a low level.

At the 12th plenary meeting held at the Government Complex Sejong on the 10th, the public interest commissioners, employer commissioners, and worker commissioners who agreed to set next year's minimum wage at 10,320 won per hour for the first time in 17 years are holding hands for a commemorative photo. From the left: Heonje Ha, standing commissioner; Injae Lee, chairman; Kijeong Ryu, executive director of the Korea Employers Federation, employer commissioner; Kisup Ryu, secretary-general of the Korean Confederation of Trade Unions, worker commissioner; Myungro Lee, head of the manpower policy department at the Korea Federation of Small and Medium Business, employer commissioner; Sunwon Kwon, professor at Sookmyung Women's University, public interest commissioner. Photo by Yonhap News.

The KEF also explained, "This decision is the result of an agreement reached based on a shared understanding that, in order to overcome the current complex crisis, labor and management need to make some concessions and coordinate their positions, rather than repeating existing conflicts."

They further urged, "We hope the government will use this decision as an opportunity to more swiftly implement policies for economic recovery and the stabilization of people's livelihoods, and that it will also provide careful policy support and supplementary measures to ensure that the minimum wage increase does not lead to negative side effects such as worsening business conditions or job losses."

The Korea Chamber of Commerce and Industry also issued a statement, saying, "Given the current domestic and international economic conditions, the business community highly values the fact that a decision was made through labor-management agreement for the first time in 17 years."

However, the KCCI added, "Considering the difficulties faced by small and medium-sized enterprises and small business owners due to sluggish domestic demand and high inflation, we hope the government will prepare additional support measures to ease their burden and actively work to create a more business-friendly environment and ease regulations." The organization also stated, "The business community will continue to play its necessary role in fostering new growth and job creation."