"Small Business Owners Struggle... Differential Application of Minimum Wage" vs. "Expansion of Minimum Wage for Special Employment"

[Financial News]  
As the review of next year's minimum wage has officially begun, the business community argues that the economic difficulties of small and medium-sized enterprises and small business owners should be considered, advocating for a differential application of the minimum wage in the food and lodging industries. On the other hand, the labor community opposed this with an expansion of application for special employment and platform workers.
On the 27th, at the 2nd plenary session of the Minimum Wage Commission held at the Government Sejong Complex, Ryu Gijeong, Executive Director of the Korea Employers Federation, stated, "It seems our economy is facing a crisis beyond stagnation," and diagnosed that "the recent gloomy economic situation, having already reached a high level, is further exacerbating the difficulties of those who have to pay the minimum wage." 
He continued, "According to a survey conducted by the Korea Federation of Micro Enterprise in April on 1,000 small business owners, their average monthly operating profit is 2,088,000 won, which does not even reach the monthly conversion amount of 2,096,000 won for minimum wage workers working 40 hours a week," and added, "The minimum wage set by the state should not exacerbate or ignore the difficulties of small and medium-sized enterprises and small business owners who are at the limit."
Lee Myeong-ro, Head of the Human Resources Policy Headquarters at the Korea Federation of SMEs, also said, "Our minimum wage level is high both absolutely and internationally," and predicted, "Next year, due to the tariff crisis originating from the United States, exports are expected to decrease significantly, making it difficult to expect a trickle-down effect, and the payment capacity of SMEs, small business owners, and self-employed individuals is expected to decline further."
In particular, he argued, "Through differentiated application by industry, conditions should be created for small business owners and self-employed individuals who are at the limit to comply with the minimum wage," and added, "Some industries such as food and lodging are becoming more vulnerable to the point of standing at a crossroads of survival, so the minimum wage should be applied differently to reduce the burden of labor costs for these industries." 
On the other hand, the labor community stated that a high rate of increase in the minimum wage and expanded application for special employment and platform workers are necessary. Ryu Giseop, Secretary-General of the Federation of Korean Trade Unions, said, "The expansion of minimum wage application confirmed on site is a task of the times, and differentiated application by industry or region is merely stigmatization," and added, "The core means to coexist with small business owners and small self-employed individuals is the minimum wage. The promotion of consumption due to increased disposable income is the first step towards coexistence."
Lee Misan, Vice Chairman of the Korean Confederation of Trade Unions, emphasized, "A complaint on minimum wage violations, reflecting the reality of special employment and platform workers at the hourly wage level of 8,220 won, has been submitted to the Ministry of Employment and Labor," and added, "They are threatened with survival as they have no compensation for travel and waiting time, and bear various costs and insurance themselves." 

aber@fnnews.com Park Ji-young Reporter