As discussions continue over next year's minimum wage, the gap between labor and management has narrowed to 1,060 won.
The Minimum Wage Commission held its 12th plenary meeting on July 7 at the Government Sejong Complex to discuss the minimum wage level. On this day, labor representatives proposed a revised minimum wage of 11,500 won per hour, while management suggested 10,440 won.
Compared to the fourth revised proposal presented on July 2, labor reduced its request by 200 won, while management increased its offer by 30 won. Consequently, the gap between the two sides decreased from 1,290 won to 1,060 won.
From the outset of the meeting, representatives from both sides engaged in a tense exchange. Ryu Gi-jeong, Executive Vice President of the Korea Employers Federation, stated, "Over the past decade, the minimum wage has increased by 79.7%, while the consumer price index has risen by only 22.9%. This means the minimum wage has risen approximately 3.5% faster than inflation. Recent price trends must also be viewed from the perspective of business costs. Small and medium-sized enterprises and small business owners are struggling to cope with rising costs amid intensified competition and economic downturns."
Yang Ok-seok, head of the Human Resources Policy Division at the Korea Federation of Small and Medium Businesses, emphasized, "Although the legal deadline for minimum wage deliberations has passed, we cannot allow a decision to be made under time pressure that small and medium-sized enterprises cannot bear. An increase in the minimum wage could distort the wage structure in the labor market, weaken the competitiveness of small and medium-sized enterprises, lead to an increase in part-time work under 15 hours, and ultimately result in job losses, causing structural harm to our entire industry."
In contrast, labor representatives stressed the need to address income inequality. Ryu Gi-seop, Secretary General of the Korean Confederation of Trade Unions, remarked, "While large semiconductor companies are thriving, the lower tiers of the labor market are experiencing deepening wage gaps and income inequality, threatening their very livelihoods. The minimum wage will significantly impact not only workers' livelihoods but also the pace of domestic recovery. Support for small and micro businesses must accompany this effort to stimulate domestic demand."
Im Ji-sun, Deputy Secretary General of the Korean Public Service and Transport Workers' Union, criticized the commission, stating, "The commission is shifting all economic responsibilities, including median wages, payment capacity, job issues, and the low incomes of self-employed individuals, onto minimum wage workers. The public interest committee's call to 'narrow the gap' seems to pressure only the labor side, undermining the value of low-wage workers and pushing them into isolated lives."
Seong Jae-min, a member of the public interest committee and a researcher at the Korea Labor Institute, noted, "Both sides have likely shared their positions and reasoning sufficiently. It is important to examine the significance of the minimum wage level in the current economic labor market context in a balanced manner. Now is the time to translate the discussions into concrete figures."
The labor and management sides are expected to continue deliberations in the plenary meeting to further narrow the minimum wage gap. If they fail to significantly reduce their differences, the public interest committee may propose a 'facilitation range' with upper and lower limits to encourage agreement or a vote within that range.
* This article has been translated by AI.
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