The Small Business Association announced on the 27th that it has submitted an objection to the Ministry of Employment and Labor regarding the proposed minimum wage for 2027.
On July 16, the ministry announced that the minimum wage for the upcoming year would be set at 10,700 won per hour, allowing for objections to be filed within 10 days from that date.
In its objection, the association urged a review of the proposed minimum wage, stating that it would push small business owners to their financial limits.
According to the association, the new minimum wage would increase the monthly salary for each worker by approximately 79,000 won, resulting in an annual increase of about 950,000 won. For businesses employing four workers, this would lead to an additional labor cost of over 10 million won per year, including employer contributions to social insurance.
With 40% of small business owners reporting average monthly profits below 2 million won, the association argues that such an increase in labor costs is unsustainable for many.
The association also called for a reconsideration of the uniform application of the minimum wage, which does not take into account the differences in payment capabilities across various industries.
Song Chi-young, president of the Small Business Association, held a press conference in front of the Ministry of Employment and Labor in Sejong before submitting the objection. He pointed out, "This increase comes as a double blow amid declining profits and economic downturn, accelerating job cuts among small business owners."
He emphasized, "A review of the proposed minimum wage for 2027 is essential to protect the survival rights of small business owners and prevent a crisis in employment."
* This article has been translated by AI.
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