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Challenges Persist in Era of 10,000 Won Minimum Wage The minimum wage for next year has been set at 10,700 won per hour, but challenges surrounding the system remain unresolved. The rapid increase in platform workers complicates the determination of employee status and work hours under the current regulations. The proportion of workers earning less than the legal minimum wage is still in double digits. Voices are rising to examine not only the annual wage increase rates but also the application scope and practical effectiveness of the system. ◆880,000 Platform Workers... Minimum Wage for Subcontractors Rejected According to the Ministry of Employment and Labor and the Korea Employment Information Service, as of 2023, the number of platform workers, including delivery riders, is estimated to be around 880,300. This figure has increased from 661,000 in 2021 to 795,000 in 2022, continuing an upward trend. Platform workers are now engaged in various fields beyond delivery and driving, including domestic work, caregiving, information technology (IT), education, counseling, and design. However, many platform workers are classified as independent contractors or special employment workers rather than employees. Their compensation is based on the number of tasks completed or performance rather than hours worked, leading to ongoing debates over employee status and minimum wage calculations. The current minimum wage law allows for a separate minimum wage to be set for subcontracted workers based on output or performance, as it is difficult to calculate wages on an hourly basis. However, there have been no instances of a separate minimum wage being established under this provision. This year, the Minimum Wage Commission included the issue of minimum wage application for subcontracted workers in its official discussions for the first time. Labor representatives argued that minimum compensation should be guaranteed for each service provided by delivery riders and drivers. In contrast, business representatives expressed concerns about the difficulty of applying a uniform standard due to the varying nature of work and challenges in accurately measuring work hours. Ultimately, the proposal was rejected in a vote, with 11 in favor and 15 against. However, recent court rulings are introducing new variables into the discussion of platform workers' employee status. On July 3, the Seoul High Court ruled that a rider working through a delivery platform application could be considered an employee under labor law if they were subject to specific direction and supervision from the company. The court noted that the rider could not independently secure customers and that their compensation and work methods followed the company's established criteria. While this ruling does not universally recognize the employee status of all platform workers, it indicates that work allocation and control through applications and algorithms can serve as grounds for direction and supervision. This could significantly impact future discussions on the application scope of the minimum wage. ◆1 in 8 Workers Earn Below Minimum Wage... Practical Effectiveness Remains a Challenge The issue of workers not receiving the minimum wage despite being subject to the system persists. An analysis of the economically active population survey by the Korea Employers Federation found that the minimum wage noncompliance rate for 2024 is projected to be 12.4%. This means that 1 in 8 wage workers is earning less than the legal minimum wage, with some sectors reporting noncompliance rates exceeding 30%. Critics argue that simply raising the minimum wage will not achieve the system's goal of protecting low-wage workers. There is a need to comprehensively review how to protect workers who fall between traditional employees and independent contractors, as well as the payment capabilities of small businesses, labor inspections, and support measures. Public members of the Minimum Wage Commission have also recommended that the Ministry of Labor establish a task force for system improvements during next year's minimum wage deliberations, urging a comprehensive review of the application scope and determination criteria. They believe that as employment forms rapidly change due to the spread of artificial intelligence (AI) and the growth of the platform industry, the commission has been repeating similar discussions each year. Kim Gi-seung, a professor of economics at Pusan National University and former president of the Labor Economics Association, stated, "Platform workers differ significantly from traditional wage workers, and we need to consider not only including them in the current minimum wage system but also exploring separate protection methods. The annual discussions tend to focus solely on wage increases and amounts, but we must also comprehensively address the application scope, noncompliance rates, and the changing nature of employment across sectors and regions." 2026-07-15 16:48:00 -
2027 Minimum Wage Set at 10,700 Won Amid Labor Disagreement The minimum wage for 2027 has been determined, but labor and management failed to reach an agreement this year. The final proposals from both sides were 30 won apart, leading to a decision by vote instead of consensus. This has raised concerns about the effectiveness of the minimum wage determination system and the need for practical improvements.On July 15, relevant authorities reported that the Minimum Wage Commission has set the minimum wage for 2027 at 10,700 won per hour, a 3.7% increase (380 won) from this year's wage of 10,320 won. After failing to reach an agreement on the public interest committee's recommendation, the labor sector proposed 10,730 won, while the management side suggested 10,700 won, resulting in a vote that favored the employer's proposal.Commission Chairman Kwon Soon-won expressed disappointment over the lack of agreement, stating, "It is quite regrettable that we could not reach a consensus, and I feel a significant sense of responsibility as the chairman. The final amendment was only 130 won apart, and the vote was conducted with a 30 won gap, so I consider it a vote akin to an agreement."The structure of determining the minimum wage through voting rather than consensus has become entrenched. Since the implementation of the relevant system in 1988, there have only been eight instances where the minimum wage was set through labor-management consensus. Last year marked the first agreement in 17 years, but it was marred by the exit of members from the Korean Confederation of Trade Unions (KCTU).The current structure, which includes nine representatives each from workers, employers, and public interest members, is seen as a barrier to reaching consensus.There is also significant uncertainty surrounding the system. The Minimum Wage Act stipulates that the minimum wage should be based on factors such as workers' living costs, wages of similar workers, labor productivity, and income distribution rates. However, there is no specific formula established for these criteria. New forms of employment, such as platform labor, are emerging, which fall outside the current labor laws.In response, public interest members have recommended that the government improve the system. They have called for the establishment of a 'System Improvement Task Force' within the Ministry of Employment and Labor in the second half of this year to comprehensively review and research the applicable targets and determination criteria, and to develop a comprehensive improvement plan.This year's discussions included proposals for differentiated application by industry and separate minimum wage applications for subcontracted workers, both of which were ultimately rejected after voting. Discussions continued regarding whether the current system adequately covers workers who are employed through platforms or whose wages are difficult to calculate on an hourly basis, but no conclusions were reached.Chairman Kwon stated, "The minimum wage system has maintained its basic framework for nearly 40 years, with changes only in its application scope, and there are many areas that require improvement. The essence of the recommendation is for the Ministry of Labor to seek system improvements based on the issues encountered during the deliberation process of the Minimum Wage Commission."The Ministry of Labor, which has received the recommendations from the Minimum Wage Commission, has also decided to engage in discussions on system improvements. The government has outlined 'improvements to the operation of the Minimum Wage Commission and the criteria for determining the minimum wage' as part of its national agenda. A ministry official stated, "We are still in the review stage, but we will approach this by addressing the operational issues of the Minimum Wage Commission and improving the discussion structure."* This article has been translated by AI. 2026-07-15 16:48:00
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KOSPI climbs back above 7,000 as foreign investors snap up semiconductor shares SEOUL, July 15 (AJP) - South Korean stocks led gains across Asia on Wednesday as softer-than-expected U.S. inflation data and ASML's stronger earnings, higher guidance and chipmaking capacity expansion plans fueled broad-based buying, with foreign investors piling into semiconductor shares. The benchmark KOSPI surged 6.24 percent or 427.58 points to close at 7,284.41, rebounding above 7,000 just two days after falling below the level earlier this week. Foreign investors bought a net 2.32 trillion won (US$1.56 billion) worth of shares, while institutions purchased a net 182.3 billion won. Retail investors sold a net 2.47 trillion won. A buy-side sidecar was triggered minutes after the opening bell as program buying accelerated. Buying gathered pace after U.S. consumer inflation came in below market expectations, easing concerns over additional Federal Reserve tightening. Semiconductor shares also gained after ASML reported stronger-than-expected second-quarter earnings, raised its 2026 revenue forecast and announced plans to expand production capacity for EUV lithography systems. Semiconductor heavyweights led the advance. SK hynix climbed 8.8 percent to 2,082,000 won after its U.S.-listed ADR surged more than 27 percent overnight, while Samsung Electronics gained 6.3 percent to 279,500 won. Hanmi Semiconductor soared 29.9 percent as buying spread across the AI semiconductor supply chain. Hansol Technics advanced 23.7 percent after reporting a 96 percent subscription rate for its rights offering, while Daeduck Electronics gained 22.0 percent. The rally extended across the broader market, with 711 KOSPI-listed stocks advancing and 169 declining. Electronics equipment, communications equipment and semiconductor-related companies were among the day's strongest performers. The tech-heavy KOSDAQ climbed 5.80 percent to close at 829.43. Foreign investors bought a net 23.1 billion won and institutions purchased 108.5 billion won, while retail investors sold a net 140.7 billion won. HLB finished at the daily limit, while Jeju Semiconductor rose 20.9 percent. Peptron gained 18.2 percent, Amotech climbed 20.8 percent, and GigaLane jumped 29.9 percent after the National Information Society Agency said Korean-developed Open RAN equipment and AI-based network solutions would be deployed in demonstration projects in Japan. Semiconductor-related companies including TLB, Simtech Holdings and Wonik IPS also posted double-digit gains. The Korean won strengthened for a seventh consecutive session against the U.S. dollar, closing at 1,487.8 won. Japan's Nikkei 225 gained 1.5 percent and Hong Kong's Hang Seng Index rose 1.4 percent. China's Shanghai Composite slipped 0.5 percent after second-quarter gross domestic product grew 4.3 percent from a year earlier, below market expectations. Brent crude traded above $85 a barrel as renewed tensions involving Iran kept supply concerns in focus. 2026-07-15 16:44:49 -
Minister Choi Hwi-young Promises Support for Broadcasting Industry Amid JTBC Crisis Minister of Culture, Sports and Tourism Choi Hwi-young stated on July 15 that the government will explore fundamental measures to improve the cash flow in the broadcasting industry.Choi held an emergency meeting with representatives from the broadcasting sector to assess the situation following JTBC's application for corporate rehabilitation and to discuss response strategies.Attendees included Minister Choi, Kim Yoon-ji, head of the Korea Creative Content Agency, and leaders from major independent production companies that have business ties with JTBC, as well as representatives from relevant industry associations. They directly listened to on-the-ground concerns and discussed effective government support measures.Choi expressed understanding of the industry's worries that the situation with JTBC could lead to a contraction in production and investment across the domestic broadcasting sector. He emphasized, “We will actively seek available policy measures to ensure that the broadcasting industry receives treatment commensurate with its excellent production capabilities and the value of its works.”Participants raised concerns about delays in production cost payments from JTBC and the potential for reduced drama programming, highlighting the operational impacts and broader repercussions for the industry. They called for proactive government support to minimize the fallout on the broadcasting ecosystem.Meanwhile, the Ministry of Culture is receiving reports of damages, such as unpaid production costs, through the Fair Coexistence Center at the Korea Creative Content Agency. To prevent a downturn in the broadcasting industry, the ministry plans to expand next year's production support budget and the scale of low-interest loan assistance for the sector.* This article has been translated by AI. 2026-07-15 16:44:00
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Public Home Shopping Leverages AI to Enhance Production and Support Small Businesses Artificial intelligence (AI) is transforming not only the production methods in the home shopping industry but also the ways in which small businesses receive support. Public Home Shopping is accelerating its 'AI-based market support' initiative by utilizing AI models for content creation, reducing production costs while increasing the visibility of small business products.According to industry sources, Public Home Shopping recently unveiled two new AI models, 'Gongyounghee' and 'Young Unni,' which reflect the image of a public institution. These models will serve as the face of Public Home Shopping across various promotional channels, including brand films, promotions, social media, and short-form content.The AI models are becoming a key element in changing content production methods, going beyond mere marketing characters. Their biggest advantage is the ability to maintain a consistent brand image while reducing the time and costs associated with casting, shooting, and post-production.Gongyounghee, representing a trustworthy and relatable 40-year-old 'K-eldest daughter,' is tasked with conveying the image of a public institution. Meanwhile, Young Unni, a 30-year-old 'K-granddaughter,' will act as a promotional model that communicates closely with consumers, aiming to expand connections with younger audiences.Public Home Shopping plans to actively utilize both AI models to promote products from small and medium-sized enterprises (SMEs) and small business owners. The strategy is to continuously produce AI-generated content to increase product exposure and enhance brand recognition, maximizing the effects of market expansion.The AI-based content production has already yielded results. The fashion program 'Fashion Palomi (美),' which debuted in April, is a prime example of applying AI throughout the production process. Featuring an AI model as a virtual influencer, the program introduces small business fashion brands, utilizing AI technology for studio backgrounds, videos, and background music.Broadcasting every Friday, 'Fashion Palomi' recorded approximately 1.8 billion won in market support as of July 7. Following the broadcast, the content is also repurposed into YouTube short-form videos to continuously promote small business products.Public Home Shopping is expanding its use of AI across the organization. Early last year, it adopted the AI personalization marketing solution 'Groobee' from Platter to enhance customer-specific product recommendations and personalized marketing. This has been evaluated as a foundation for more effective exposure of SME and agricultural products to consumers.In January of this year, the company established a new AI content division to plan and produce AI-based broadcast sources and digital content. In the second half of the year, it plans to launch an AX Promotion Team to oversee the company's AI transformation (AX). This initiative aims to utilize AI not just as a standalone technology but as a core means to innovate overall organizational operations.This evolution signifies that the use of AI in public institutions is moving beyond simple task automation to enhance the competitiveness of support for small businesses. By increasing production efficiency and reinvesting the savings into market support and new content development, a positive cycle can be established.A representative from Public Home Shopping stated, "We plan to strengthen our brand image through AI models that embody trust as a public institution and to widely utilize them in promoting small business products." They emphasized, "We will continue to enhance the market support effects for small businesses through innovative content integrated with AI technology."* This article has been translated by AI. 2026-07-15 16:40:00
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President Yoon Calls for Swift Measures on Single-Stock Leverage ETFs President Yoon Suk Yeol on July 15 directed officials to swiftly implement measures regarding single-stock leverage exchange-traded funds (ETFs) linked to Samsung Electronics and SK Hynix, which have been identified as major factors behind recent market volatility. During a work report held at the Blue House, President Yoon made this request to Jeong Eun-bo, chairman of the Korea Exchange. Prior to this, he mentioned to Lee Chan-jin, the head of the Financial Supervisory Service, that there have been numerous criticisms regarding single-stock leverage ETFs, saying, "It seems you have been facing a lot of challenges recently." In response, Lee stated, "As a market manager, I have responsibilities, and I am taking them seriously." Lee also addressed the recent police raid on a self-healing hospital following complaints from four insurance companies, noting, "The Financial Supervisory Service is providing overall support and is currently organizing information from the insurance companies to provide to the investigative authorities."* This article has been translated by AI. 2026-07-15 16:40:00
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102 Golf Courses in South Korea Remain Open This Summer, 25 Temporarily Closed As the summer heat intensifies, 102 out of 127 golf courses across South Korea will operate without seasonal closures.The Korea Golf Course Management Association announced on July 15 the summer opening and closing status of golf courses based on a survey of its 209 member companies.Among the 127 golf courses that responded to the survey, 102 will welcome golfers this summer without any closures. In contrast, 25 courses have opted for summer breaks to manage course maintenance and allow staff to rest.The longest closure will be at Gonjiam Country Club, which will shut down for 11 days from July 27 to August 6. Wellington will close for 10 days from July 28 to August 6, while Teddy Valley and Haevichi Seoul will each take a seven-day break from August 3 to August 9 and July 27 to August 2, respectively.The association advises golfers to check the opening status of courses before visiting. "Many golf courses have not yet finalized their closure schedules, and some may implement flexible closures depending on weather conditions such as heat waves and localized heavy rain," the association stated. "It is advisable to confirm the opening status directly with the respective golf course before planning your visit."Golf Courses Open Without Closure (102)Gaya, Gamgok, Gyeryongdae, Goseong Nobel, Gochang, Golfzon County Seonun, Golf Club Q, Gwangju, Gumi, Grand, Giheung, Gimhae Sangnok, Namyeoju, Dasan Beach, Damyang Reina, Daegu, The Siena Seoul, Dogo, Dongbusan, Dongwon Sun Valley, Radena, Ravier Belle, Lakeside, Lakewood, Lotte Skyhill Buyeo, Lotte Skyhill Jeju, Le One, Maron, Mauna Ocean, Midas Lake Icheon, Midas Valley Cheongpyeong, Mudeungsan, Muju Deogyusan, Mungyeong, Ballios, Venue G, Bella 45, Bora, Volcano, Bugok, Black Valley, Blue One Yongin, B.A. Vista, South Springs, Shambhala, Seogyeong Tani, Seo Seoul, Seolhaewon, Sagewood Yeosu Gyeongdo, Sejong Emerson, Sejong Field, Century 21, Sono Felice, Suwon, Sun Hill, Anseong, Yangju, Yangji Pine, Eodungsan, Edinburgh, Everis, A1, H1 Club (formerly Deokpyeong), Elysian Jeju, All Day Royal Fore, All Day Oksfield, All Day Imperial Lake, Ulsan, Yuseong, Eunhwa Sam, EGIS Sky, Ipo, Jeil, Jungmun, Jisan, Changwon, Cascadia, Koska, Crown, Chris Valley, Club Vision Hills, Kingsdale, Kings Rock, Pami Hills, Palgong, Palpal, Poseven Geumgang, Pocheon Adonis, Pristine Valley, Princess, Plaza CC Seorak, High One, Hanseong, Hanyang, Haenada, Haevichi (Jeju), Haeundae, Happiness, Hwasan, Hwasung Sangnok, Hwasun, Hildrosa.Golf Courses with Seasonal Closures (25)Gonjiam: 7/27-8/6Geumgang: Every Monday starting 8/3New Korea: 7/29-7/31The Star Hue: 8/3-8/5Rexfield: 8/3-8/6Route 52: 8/3Blue Heron: 7/27-7/31Songchu: 8/10-8/12Sinwon: 7/27-7/30Ananti Jungang (formerly Emerson): 8/3-8/4Asiana: 8/3Anseong Benest: 7/27Yeoju Classic: 8/3-8/5Ujeong Hills: 7/28-7/29Wellington: 7/28-8/6East Valley: 8/3-8/6Idong Lake: 8/3-8/4Cheonryong: 8/3-8/5Teddy Valley: 8/3-8/9Te Cloud: 8/3-8/5Pinks: 7/15, 8/19Hanwon: 8/3Haevichi (Seoul): 7/27-8/2Phoenix Pyeongchang: 8/31, 9/15Whistling Rock: 8/3-8/7* This article has been translated by AI. 2026-07-15 16:36:00
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Conflict in National Assembly Over Abolishing Prosecutorial Supplementary Investigation Rights On July 15, members of the National Assembly's Legislative Judiciary Committee clashed over the abolition of supplementary investigation rights for prosecutors. The ruling coalition held a full meeting in the absence of the People Power Party, with opinions divided on whether to maintain some supplementary investigation rights for exceptional cases or to abolish them entirely.During the meeting, Democratic Party lawmaker Kim Nam-hee stated, "There are many voices opposing the abolition of supplementary investigation rights or calling for further discussion." She expressed concern that pushing for reforms without sufficient public support could undermine trust in the government.Kim emphasized, "If we do not reflect the opinions of victims, the Lee Jae-myung administration will ultimately be held accountable," urging a thorough discussion on how to respond when victims raise issues.Kim Nam-hee co-signed a bill proposed by fellow Democratic Party lawmaker Hong Gi-won the previous day, which calls for maintaining supplementary investigation rights in exceptional cases such as sexual violence and abuse of children and the elderly.This bill is expected to be discussed in conjunction with three other bills currently under review by the committee's subcommittee starting July 16. The proposed amendments to the Criminal Procedure Act include joint proposals from Democratic Party lawmaker Kim Yong-min and Justice Innovation Party lawmaker Park Eun-jung, as well as a bill led by Justice Innovation Party lawmaker Cha Kyu-geun, and the agenda from the Democratic Party's Criminal Procedure Act Task Force.In this context, Park Eun-jung, known for her hardline stance on abolishing supplementary investigation rights, argued, "Reports have emerged highlighting the need for supplementary investigation rights due to organized concealment by the police in the Jang Yoon-ki case." She also pointed to instances where prosecutors have used supplementary investigation rights to cover up cases, such as the former Deputy Minister of Justice Kim Hak-eui and the case involving the brother-in-law of independent lawmaker Han Dong-hoon.Park asserted, "The reason for pursuing prosecutorial reform is that there have been issues with prosecutorial investigations," and emphasized that prosecutors should not be granted investigative powers again.* This article has been translated by AI. 2026-07-15 16:36:00
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Government Evaluates Impact of Tariff Quotas on Imported Fruits The government visited distribution sites to assess the impact of reduced tariff quotas on imported fruits.On July 15, the Ministry of Finance's inter-agency support team for public welfare visited the Dolkorea logistics center in Pyeongtaek, Gyeonggi Province, alongside representatives from the Korea Agro-Fisheries & Food Trade Corporation (aT), E-Mart, and Lotte Mart. They checked the storage and distribution status of imported fruits subject to tariff quotas and held a meeting with industry stakeholders.This site visit aimed to confirm whether the extension of tariff quotas on three types of imported fruits—bananas, mangoes, and pineapples—was being properly reflected in the distribution stage and contributing to stabilizing consumer prices.In June, the government extended the tariff quota period for these three types of imported fruits, originally set to expire on June 30, until August 15. As a result, the tariff rate for 129,000 tons of bananas, 33,500 tons of pineapples, and 18,500 tons of mangoes was reduced from 30% to 5%.During the meeting, industry representatives raised concerns about rising import prices due to exchange rate fluctuations and decreased production in exporting countries, as well as cost burdens arising from logistics, storage, and transportation processes.Jang Do-hwan, head of the public welfare support team, stated, "The purpose of the tariff quotas is to reduce food costs and stabilize prices for consumers. I urge you to minimize additional costs and profit margins that arise within the complex distribution structure so that the benefits of reduced tariffs can be fully passed on to the public's tables."* This article has been translated by AI. 2026-07-15 16:32:00
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Government Evaluates Impact of Tariff Quotas on Imported Fruits The government visited distribution sites to assess the impact of reduced tariff quotas on imported fruits.On July 15, the Ministry of Finance's inter-agency support team for public welfare visited the Dolkorea logistics center in Pyeongtaek, Gyeonggi Province, alongside representatives from the Korea Agro-Fisheries & Food Trade Corporation (aT), E-Mart, and Lotte Mart. They checked the storage and distribution status of imported fruits subject to tariff quotas and held a meeting with industry stakeholders.This site visit aimed to confirm whether the extension of tariff quotas on three types of imported fruits—bananas, mangoes, and pineapples—was being properly reflected in the distribution stage and contributing to stabilizing consumer prices.In June, the government extended the tariff quota period for these three types of imported fruits, originally set to expire on July 30, until August 15. As a result, the tariff rate for 129,000 tons of bananas, 33,500 tons of pineapples, and 18,500 tons of mangoes was reduced from 30% to 5%.During the meeting, industry representatives raised concerns about rising import prices due to exchange rate fluctuations and decreased production in exporting countries, as well as the cost burdens arising from logistics, storage, and transportation.Jang Do-hwan, head of the public welfare support team, stated, "The purpose of the tariff quota is to reduce food costs and stabilize prices for consumers. I urge you to minimize additional costs and profit margins that arise within the complex distribution structure so that the benefits of the tariff reduction can be fully passed on to the public's tables."* This article has been translated by AI. 2026-07-15 16:32:00