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  • Banks Tighten Household Loan Policies, Impacting Genuine Borrowers
    Banks Tighten Household Loan Policies, Impacting Genuine Borrowers Banks are belatedly raising the barriers for household loans. KB Kookmin Bank has decided to reduce its mortgage loan limit from 600 million won to 300 million won, followed by Shinhan Bank, which has begun restricting mortgage insurance subscriptions. NH Nonghyup Bank and Hana Bank have also implemented similar measures. The trend of lowering mortgage limits, halting loan recruitment, and restricting mortgage insurance is spreading across the banking sector. This reflects a judgment that the increase in household loans can no longer be ignored. However, raising the barriers overnight after being preoccupied with competitive lending during a rapid increase in loans is a typical case of a delayed response.Managing household debt is necessary. With expectations of rising home prices and an increase in mortgage loans, banks cannot afford to be passive. The issue lies in the timing and manner of the response. Banks are aware of their annual household loan targets and monitor market conditions. Nevertheless, if they suddenly halve limits and restrict insurance subscriptions without adequate warning or buffer measures, the burden ultimately falls on borrowers. If financial institutions neglect risk management and then abruptly close their doors, it cannot be considered responsible finance.The inconvenience for genuine borrowers should not be taken lightly. For those facing payment deadlines or preparing to move into newly built apartments, a reduction in loan limits is not merely an inconvenience. It can disrupt their entire financial planning and, in some cases, lead to contract breaches and credit risks. Placing all potential buyers, including first-time homebuyers and those looking to upgrade, at the same threshold under the pretext of curbing speculative demand is not a sophisticated management approach.The staggered implementation of these measures by banks is also problematic. When one bank tightens its lending, borrowers flock to other banks that still have open doors. This prompts those banks to also impose lending restrictions. Ultimately, the market is left with growing uncertainty about which bank will close next. If measures to manage household loans lead to long lines at bank counters and a balloon effect, it indicates failed management.A more significant issue is that the government's real estate response still relies excessively on loan regulations. When signs of rising home prices emerge, lending is tightened, and when transactions freeze, lending is loosened again. This approach has already shown its limitations multiple times. By ignoring structural factors such as supply shortages, concentration in Seoul, instability in the rental market, and distortions in tax and subscription systems, merely tightening loans will only temporarily halt the market. Cutting off the financial lifeline for consumers does not eliminate the causes of housing instability.If the goal of real estate policy is to stabilize home prices, loan regulations should be a supplementary measure. There is a need for detailed criteria that protect genuine buyers while curbing excessive leverage. Exceptions and transitional provisions should be established for first-time buyers, genuine home seekers, existing contract holders, and those preparing to move in. Conversely, high-risk loans for multiple property investors or short-term profit motives should be managed more stringently. The current approach of uniformly lowering limits is administratively easy but politically blunt.Banks also cannot be free from responsibility. Household loans are a major source of income for banks. During periods of rising interest rates, they increase interest income, and during real estate booms, they expand mortgage lending. However, when total management becomes burdensome, it is unacceptable to suddenly shift the inconvenience onto genuine borrowers. Even if lending thresholds are raised, prior notice, protection for existing applicants, and exception criteria at various stages of contracts must be established.Household debt is at a dangerous level, and the overheating housing market must be curbed. However, in the rush to extinguish immediate fires, the financial plans of genuine borrowers should not be disrupted, nor should market instability be exacerbated. What is needed now is not stricter loan regulations but more sophisticated policies. Protective measures for existing contract holders and those with upcoming payments must be prioritized. Without a comprehensive approach that integrates supply, taxation, finance, and housing welfare, merely closing loan counters will not prevent further chaos.* This article has been translated by AI. 2026-07-09 16:04:00
  • Labor Ministry Calls for Stricter Sentencing Guidelines for Wage Theft
    Labor Ministry Calls for Stricter Sentencing Guidelines for Wage Theft The Ministry of Employment and Labor has requested the Supreme Court's sentencing committee to strengthen the sentencing guidelines for wage theft crimes. With the revised Labor Standards Act set to take effect in October, increasing the legal penalties for wage theft, the ministry argues that actual court sentences should reflect the severity of these crimes.On July 9, Labor Minister Kim Young-hoon met with the committee's chairman, Lee Dong-won, to discuss improvements to the sentencing guidelines for wage theft offenses.According to the ministry, the scale of wage theft in South Korea exceeded 2 trillion won last year and remains high this year. In 2022, the total amount of unpaid wages reached 2.0679 trillion won, affecting 262,000 workers. As of May this year, the cumulative unpaid wages amounted to 772.7 billion won, impacting 91,206 workers.In response, the government announced a comprehensive plan to eradicate wage theft in September 2022, which includes stricter penalties for habitual offenders, enhanced support for wage recovery, and the establishment of a preventive oversight system. Additionally, the revised Labor Standards Act, effective October 8, will increase the legal penalties for wage theft from a maximum of three years in prison or a fine of up to 30 million won to a maximum of five years in prison or a fine of up to 50 million won.The ministry believes that the sentencing guidelines should also be revised to ensure that penalties are effective in deterring wage theft. The current guidelines, established in 2016, categorize wage theft crimes based on the amount owed: under 50 million won, between 50 million and 100 million won, and over 100 million won. For cases involving over 100 million won, the basic sentence ranges from eight months to one and a half years in prison, with aggravated sentences ranging from one year and two months to two and a half years.During the meeting, the ministry requested adjustments to the current guidelines, advocating for harsher penalties for larger amounts of unpaid wages. It emphasized that habitual and intentional wage theft should be punished more severely than cases arising from business difficulties, and that factors such as the number of affected workers or the duration of the wage theft should also be considered in sentencing.The ministry also called for the establishment of new sentencing guidelines for fines. It noted that most wage theft cases result in minor fines, but there are currently no established guidelines for these penalties, highlighting the need for a framework that corresponds to the scale of the damage.Kim Young-hoon stated, "Wages must be paid on time and fairly as a rightful compensation for labor, and this principle must be upheld in all cases. Wage theft is a serious crime that threatens not only the livelihood of individual workers but also the lives of their families." He added, "To ensure that policies aimed at eradicating wage theft are effective in practice, it is essential to establish strict sentencing guidelines that correspond to the severity of the crime, and we will continue to consult with the sentencing committee on this matter."* This article has been translated by AI. 2026-07-09 16:04:00
  • Major Electronic Financial Firms Enhance ID Verification to Prevent Fraud
    Major Electronic Financial Firms Enhance ID Verification to Prevent Fraud 토스·카카오페이·네이버페이 등 주요 전자금융업체들이 정부의 주민등록증 진위 확인 시스템을 활용해 비대면 본인확인 절차를 한층 강화된다. 최근 미성년자들이 인공지능(AI) 기술을 활용해 신분증 모바일 확인 서비스를 위·변조하는 사례가 늘어나자 이를 차단하기 조치로 보인다. 금융감독원은 토스·네이버페이·카카오페이와 행정안전부, 금융결제원과 함께 '주민등록증 진위 확인 확대를 위한 업무협약(MOU)'을 체결했다고 9일 밝혔다. 그간 전자금융업체들은 고객 확인 과정에서 사진을 제외한 성명, 주민등록번호, 발급 일자 유효성 등만 제한적으로 확인할 수 있었다. 이 때문에 주민등록증을 위·변조해 간편송금에 악용하거나 범죄수익을 은닉하는 등 범죄에 악용되는 경우가 많아 더 강력한 신원확인 체계를 구축해야 한다는 필요성이 제기됐다. 이번 협약으로 주요 전자금융업자도 강화된 고객확인(KYC) 절차에 정부의 주민등록증 진위 확인 시스템을 활용할 수 있게 됐다. 주민등록번호뿐 아니라 주민등록증 사진 정보까지 정부 보유 정보와 대조할 수 있게 된 것이다. 업계는 위·변조 신분증을 이용한 금융사기와 명의도용을 막는 데 도움이 될 것으로 기대하고 있다. 행정안전부는 금융결제원의 금융 연계망을 이용해 올해 토스, 카카오페이, 네이버페이를 대상으로 시범 운영을 실시할 계획이다. 토스는 API(응용프로그램인터페이스) 연동과 개발을 마친 뒤 올해 안에 해당 서비스를 적용할 계획이다. 이승건 토스 대표는 "앞으로도 정부와 긴밀히 협력해 고객이 더욱 안심하고 금융 서비스를 이용할 수 있는 환경을 만들어 나가겠다"고 말했다.* This article has been translated by AI. 2026-07-09 16:04:00
  • Gwangju Police Chief Fails to Meet with Lawmaker Over Jang Yoon-ki Case
    Gwangju Police Chief Fails to Meet with Lawmaker Over Jang Yoon-ki Case Jang Dong-hyuk, a representative of the People Power Party, visited the Gwangju Police Agency on July 9 to request a meeting with Chief Kim Young-geun regarding the Jang Yoon-ki case, in which a Gwangju high school student was murdered. However, the meeting did not take place.Jang, along with lawmakers Kim Jang-gyeom, Park Jun-tae, Seo Cheon-ho, and Shin Dong-wook, arrived at the police agency in the afternoon but faced a standoff with police as access to the building was restricted. Jang canceled a previously scheduled meeting with Prime Minister Han Seung-soo to visit Gwangju.Speaking to reporters in the lobby, Jang stated, "This incident has sparked national outrage on its own, yet the police are under suspicion of destroying evidence and attempting to downplay and conceal the case. I came to confirm the circumstances of the incident and measures to prevent its recurrence, but I received no explanation at all."He added, "This is a clear display of the police's true nature. In such a situation, it is only natural for the public to be concerned about entrusting all investigative powers to the police."Lawmaker Seo Cheon-ho also expressed frustration, saying, "As representatives of the people, we came to confirm the circumstances of the case, yet we are not even allowed inside the building. How is this different from the allegations of evidence destruction raised during the investigation?"Lawmaker Kim Jang-gyeom remarked, "This is why the police are criticized as the regime's lapdogs. Did the chief flee upon hearing we were coming?"The Gwangju Police Agency stated that the visit was unannounced and that Chief Kim was reportedly away for on-site inspections in preparation for summer heavy rains.* This article has been translated by AI. 2026-07-09 16:04:00
  • AI Investment Bubble May Be Approaching, Says Shinhan Bank Executive
    AI Investment Bubble May Be Approaching, Says Shinhan Bank Executive As the global stock market continues to thrive amid a surge in artificial intelligence (AI) investments, experts predict that this upward trend may persist for some time. They advise focusing on the semiconductor and power sectors, which are benefiting from AI hardware value chains.Lee Jin-young, head of the Premier Family Office at Shinhan Bank's Banpo Center, stated on July 9 at the 'ABC Launch Commemoration AI Ecosystem Innovation Forum' held at The Plaza Hotel in Seoul, "The market is currently entering the latter stages of a bull market, and we are beginning to see the formation of an AI bubble. Historically, bubbles have lasted an average of five years, and considering the interest rate cycle, this bull market has at least one more year to go."Lee noted that the current wave of technological innovation is fostering widespread optimism, making it unlikely for the AI investment cycle to reverse quickly. He explained, "If data center investments pause for just six months, competitors will secure more semiconductors and greater AI computing power during that time. Taking a break from investment for one to two years would be akin to turning previously invested assets into sunk costs, essentially abandoning the platform business."He added, "Like the 'prisoner's dilemma' in economics, big tech companies are in a position where they cannot afford to stop investing, as they are constantly watching each other. The competition for AI investment is likely to continue."Lee anticipates that AI hardware companies will directly benefit more from this investment competition than big tech firms. He remarked, "The funds used by big tech will ultimately flow to memory companies like Samsung Electronics and SK Hynix, as well as GPU, CPU, and power infrastructure firms. While hardware companies in East Asia are experiencing significant increases in earnings per share (EPS), the profit growth rate for hyperscalers is relatively limited."As the AI investment cycle evolves, the sectors benefiting from it are also changing. Initially, NVIDIA's GPUs and high-bandwidth memory (HBM) led AI training, but the market is now shifting towards inference, increasing the importance of CPUs, DRAM, and NAND flash.Lee analyzed that since AI requires physical infrastructure like data centers, new beneficiary industries emerge whenever bottlenecks occur, not just in GPUs and memory but also in networking equipment and power facilities. He predicted, "In the future, the expansion of sovereign AI and physical AI will broaden the related value chain even further."He views the recent adjustments in semiconductor stocks as more indicative of short-term cyclical trading rather than a downturn in the AI investment cycle. Lee stated, "While big tech stocks have shown renewed strength, the key question is where big tech is allocating its funds. In terms of stock prices, the AI hardware value chain is likely to be more favorable."He noted, "Samsung Electronics' price-to-earnings ratio (PER) has dropped to 4.9, and Micron's has fallen to 7. Despite continuous growth in performance, valuations are decreasing, making it difficult to assert that 'the bubble has already burst' or 'the bubble has ended.'"However, he cautioned that the AI investment cycle will not last indefinitely and highlighted potential warning signs. He identified a surge in margin loans, indiscriminate initial public offerings (IPOs), speculative overheating centered on unprofitable companies, and aggressive interest rate hikes by the Federal Reserve as key indicators of market peaks. Additionally, he advised that the AI investment and funding trends of hyperscalers like Meta and Oracle will serve as important leading indicators for the sustainability of the AI investment cycle. 2026-07-09 16:04:00
  • Aju Media Groups AI Business Channel ABC holds AI Ecosystem Innovation Forum in Seoul
    Aju Media Group's AI Business Channel ABC holds AI Ecosystem Innovation Forum in Seoul SEOUL, July 09 (AJP) - Lim Kyu-jin, president of Aju Business Daily, delivers an opening address at the ABC launch AI Ecosystem Innovation Forum held at The Plaza Hotel in Jung-gu, Seoul, on July 9, 2026. 2026-07-09 16:02:01
  • Nvidias Valuation Drops Despite Strong AI Performance Outlook
    Nvidia's Valuation Drops Despite Strong AI Performance Outlook The valuation of American semiconductor company Nvidia has fallen back to pre-AI hype levels. Its market capitalization dropped by over $1 trillion (approximately 1,508 trillion won) in less than two months before partially recovering. While the earnings outlook remains strong, investor interest has shifted towards memory semiconductors and Nvidia's own AI chips, leading to relatively poor stock performance.Bloomberg reported on July 8 that Nvidia's 12-month forward price-to-earnings ratio (P/E) has fallen to 18. This ratio indicates how many times the stock price is trading relative to expected earnings; a lower number suggests that the stock is undervalued compared to its earnings potential.Nvidia's P/E is at its lowest level since early 2019, lower than the S&P 500's approximately 20 and the Nasdaq 100's roughly 23. This means Nvidia, often seen as a leader in AI, is being valued less than major U.S. indices.The stock price reached an all-time high of $235.47 on May 14, with a market cap soaring to $5.7285 trillion (about 8,640 trillion won). However, following a significant correction in semiconductor stocks on June 26, its market cap fell to $4.663 trillion (approximately 7,033 trillion won), erasing $1.655 trillion (around 1,607 trillion won) in just a month and a half.Since then, the stock has partially recovered, closing at $196.93 on July 7, which is 16% lower than its peak. The market cap has risen to about $4.94 trillion (approximately 7,451 trillion won). However, the stock's year-to-date increase is only 5.6%, lagging behind the gains of the S&P 500 and Nasdaq 100.The stock's underperformance is not due to a deteriorating earnings outlook. Bloomberg's projections for Nvidia's fiscal year 2027 estimate revenues of $393 billion (approximately 593 trillion won) and net income of $228 billion (around 344 trillion won), representing increases of 90% and 82%, respectively, from the previous year. The net income forecast has been raised by 13% over the past three months.Despite this, the stock's struggles are largely attributed to a shift in investor interest towards other semiconductor stocks. Micron's stock has surged over 200% this year, driven by expectations of rising prices for high-bandwidth memory (HBM). AMD and Intel have also seen significant gains. Analysts suggest that the benefits of AI infrastructure investment are extending beyond graphics processing units (GPUs) to memory and central processing units (CPUs).Additionally, major Nvidia clients like Alphabet and Amazon are expanding their own AI chip development, which adds pressure. Large tech companies are looking to reduce costs and manage supply chains directly, thereby decreasing their reliance on Nvidia.Nevertheless, Wall Street remains optimistic. Among 82 analysts covering Nvidia, only one has a sell rating. The average price target is $302, more than 50% above the current stock price. The market believes that while Nvidia may be temporarily sidelined in the memory stock rally, its earnings growth could eventually support a rebound in its stock price.* This article has been translated by AI. 2026-07-09 16:00:00
  • Ruling Party Continues Half-Assembly Amid Ongoing Negotiations
    Ruling Party Continues 'Half-Assembly' Amid Ongoing Negotiations The Democratic Party is moving forward with committee operations despite the boycott by the People Power Party, resulting in a 'half-assembly.' While both parties are engaged in negotiations, they have repeatedly failed to reach an agreement.On July 9, the Democratic Party held full meetings for the Culture, Sports and Tourism Committee, the Agriculture, Food, Rural Affairs, and Fisheries Committee, and the Finance and Economy Committee. As a result, eight of the 11 committees, where the Democratic Party has unilaterally elected chairs, have opened for the second half of the National Assembly. This reflects the party's commitment to a 'working National Assembly.'The People Power Party also boycotted all committee meetings held that day, but the Democratic Party proceeded with scheduled activities, including institutional reports. Following the previous day's introduction of bills in the Legislation and Judiciary Committee, the Finance Committee received reports from nine agencies, including the Ministry of Planning and Finance and the Bank of Korea. The Culture Committee approved plans for a hearing related to the Korea Football Association, including a list of witnesses and reference persons.The Culture Committee plans to hold the hearing on July 22 to examine the appointment process for the national football team coach and explore ways to normalize operations at the Korea Football Association. Thirteen witnesses have been selected, including former Korea Football Association President Chung Mong-kyu, former national team coach Hong Myung-bo, and former Technical Director Lee Im-sang. The committee also approved requests for attendance from 10 reference persons, including Park Ji-sung, co-chair of the K-Football Innovation Committee, and national team captain Son Heung-min.Democratic Party lawmakers expressed regret over the 'half-assembly' due to the People Power Party's absence and pressured them to participate in the committees. Lee Jae-jung, chair of the National Assembly's Culture, Sports and Tourism Committee, stated during the full meeting, "It is very regrettable that all members of the People Power Party were absent from the first meeting. I hope they return quickly so we can wisely address the pressing issues together."The leadership of both parties continues to engage in negotiations. The People Power Party held a general meeting on July 2, agreeing to pursue a stronger protest and boycott committee schedules, yet they are still appearing at the negotiation table. Following a meeting between the deputy floor leaders of both parties the previous day, the floor leaders and deputy floor leaders met again under the chairmanship of National Assembly Speaker Cho Jeong-sik.However, they have consistently failed to narrow their differences. Disagreements between the parties, particularly regarding committee formation and the special investigation into the shortage of ballots, have complicated the situation further.Meanwhile, Speaker Cho urged the floor leaders of both parties to finalize committee formation and agree on the agenda for the July extraordinary session before Constitution Day on July 17. However, the likelihood of a sudden shift in positions leading to a dramatic agreement appears slim.* This article has been translated by AI. 2026-07-09 16:00:00
  • The Success of Company AX Depends on Operational Design, Not Models
    The Success of Company AX Depends on Operational Design, Not Models The rapid adoption of generative AI has led many companies to recognize AI transformation as a key management issue. While numerous businesses are experimenting with AI in areas such as chatbots, document summarization, data analysis, and task automation, implementing an AX project reveals that merely introducing AI does not guarantee widespread organizational change or practical shifts in operations.This reality is supported by global survey results. A survey conducted last November among over 2,000 global companies found that 62% of respondents were experimenting with AI agents. However, fewer than 10% had reached a full-scale deployment stage for any specific function. This indicates that while interest and experimentation with AI are growing rapidly, integrating it into actual workflows remains challenging.I believe the reason for this is not solely due to technological limitations. Rather, the biggest challenge companies face today is not selecting an AI model, but designing a work structure and operational system that allows AI to function continuously within the organization.Initially, discussions around the introduction of generative AI focused on which model to use and what functions could be implemented. However, the questions companies are asking in AX projects have shifted. They are now concerned with how employees can effectively utilize and internalize AI in their daily tasks, which areas to prioritize for achieving return on investment (ROI), and how to establish a sustainable operational system.Why Accuracy Varies Even with the Same Model: Knowledge SystemsThis difference is most clearly illustrated in a company's knowledge system, specifically how accurately AI can read and search internal documents to provide answers. Many companies expect that simply adopting the latest models will yield accurate responses, but the actual determinant of accuracy lies in the design of the preceding stages. Understanding the format of internal documents, converting them into data without loss, and designing a search pipeline (RAG) that retrieves information aligned with the intent of the questions are crucial for the quality of the final answers.In the context of South Korean companies, this issue is even more complex. Opening a company's document folder reveals not only electronic documents with living text layers but also scanned contracts, photographed bank statements, and legal documents that exist solely as images. A significant portion of these documents consists of Korean financial and legal materials.In such cases, tools that rely solely on text extraction can distort the Korean language or disrupt the structure of tables, rendering the results practically unusable. In contrast, methods that accurately recognize images can preserve the original formatting, numbers, and Korean information at a much higher level. Even with the same document and model, the design of the processing system can lead to results that are either immediately usable or difficult to apply in practice.This is why Redbrick is committed to ongoing R&D in document parsing and RAG pipelines, aiming to build a knowledge system with high accuracy and reliability in enterprise environments. Our precise comparisons and validations of various processing methods on scanned Korean documents have confirmed that the optimal processing path varies significantly depending on the document type.Conditions for AI to Operate in the FieldFor AI to function effectively in a corporate setting, several conditions must be met. First, there must be a clear understanding of the workflow in the field. It is essential to distinguish between tasks that can and cannot utilize AI and to identify areas where immediate results can be achieved. Following this, internal data and existing systems must be integrated, and user permissions, security, audit logs, and operational policies must be designed collaboratively. Such operational design is crucial for AI to become embedded in the organization's workflow rather than remaining a standalone function.This is also the reason Redbrick applies an FDE-based approach. FDE is not merely about listening to a company's requirements and providing solutions. It involves analyzing the workflow and data structure in the field and designing the application areas, system integrations, and operational systems to ensure AI can function in real work environments. The design of the knowledge system mentioned earlier is also a key aspect of this FDE approach, addressing questions such as, “What form do the company’s documents take, and how should they be read for accuracy?”Real Results: Hong Kong E-commerce PoCRecently, Redbrick conducted a proof of concept (PoC) for an FDE-based AX project with an e-commerce company in Hong Kong, achieving significant productivity improvements. The company aimed to enhance its product selection and promotion recommendation processes using AI to establish a more efficient and rapid decision-making framework. The core objective was to predict which products would see high demand in various global regions based on data and incorporate this into the recommendation process.As a result of the PoC, a task that previously required four people about five days to complete could now be handled by one person in less than a day after implementing the AX platform. This outcome was possible not just because of the application of AI functions, but because the data analysis, recommendation processes, and workflows were redesigned in tandem. While the knowledge system provides the foundation for accurate data supply, this case illustrates the results that can be achieved when the entire workflow is restructured on that foundation.As the scope of AI application expands into actual work environments, the areas addressed by AX projects are also broadening. In corporate settings, simply applying the latest AI models is insufficient. For AI to operate reliably within an organization, it is essential to consider not only the design of data structures according to business objectives and characteristics but also the integration with existing systems, the configuration of multi-LLM tailored to the corporate environment, and the overall AI operational environment, including user permissions and audit logs.* This article has been translated by AI. 2026-07-09 15:56:00
  • Minimum Wage Negotiations Intensify as Labor Demands Bold Increases
    Minimum Wage Negotiations Intensify as Labor Demands Bold Increases As discussions on next year's minimum wage reach a critical stage, labor and management are engaged in a tense standoff. Labor representatives argue for a significant increase to ensure the livelihood of low-wage workers and stimulate domestic consumption, while management claims that small businesses and self-employed individuals are at their financial limits and call for a more measured approach.On July 9, the Minimum Wage Commission held its 13th plenary meeting at the Government Sejong Center to continue deliberations on the minimum wage for the upcoming year. During the previous meeting on July 7, labor proposed a minimum wage of 11,450 won, while management suggested 10,460 won, resulting in a gap of 990 won between the two sides.Labor advocates emphasize the need for an increase due to declining real wages and polarization in the labor market. Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, stated, "Raising the minimum wage to effectively increase the disposable income of low-wage workers is a direct policy tool for stabilizing livelihoods and recovering domestic consumption. The minimum wage is essential for supporting workers' livelihoods and sustaining local businesses."Lee Mi-sun, Deputy Chair of the Korean Trade Union Confederation, added, "The inflation rate announced by the government differs from the cost of living that workers face daily. The minimum wage should be determined based on actual household living expenses, perceived living costs, and the guarantee of real wages." She also pointed out that labor should not be the only side pressured as the public interest committee narrows the discussion.Conversely, management voices concerns about the burdens of increasing the minimum wage. Ryu Gi-jeong, Executive Vice President of the Korea Employers Federation, remarked, "The minimum wage has already reached a high level, and the ability of businesses to absorb further increases is at its limit. The burden of wage increases is widespread, and we should not conclude discussions in a routine manner."Yang Ok-seok, head of the Human Resources Policy Division at the Korea Federation of Small and Medium Businesses, stressed, "We must not set a minimum wage that exceeds the payment capacity of businesses due to pressure from deadlines. To ensure worker stability, support from government social safety nets, such as work incentives and living assistance, is also necessary."Public interest committee members are emphasizing the importance of reaching a consensus. Sung Jae-min, Deputy Director of the Korea Labor Institute, stated, "Discussions on the minimum wage illustrate how to harmonize differing interests and values through social dialogue. I urge both labor and management to show a proactive attitude and take a step closer together."Chairman Kwon Soon-won of the Minimum Wage Commission also noted, "The minimum wage belongs to both workers and employers, and the public interest committee's role is to support and mediate so that both sides can find an optimal balance. I ask that labor and management actively work towards a significant compromise to conclude discussions as soon as possible."During the meeting, both sides are expected to propose additional amendments as they engage in final negotiations. However, if the gap between their positions remains wide, there is a possibility that the public interest committee will suggest a mediation period and encourage a vote or agreement.* This article has been translated by AI. 2026-07-09 15:56:00