Business Community: "Avoided the Worst but Support Measures Needed" - Lowest Minimum Wage Increase Rate in the First Year of Any Government

[Financial News] The business community reacted to the decision to set next year's minimum wage at 10,320 won, up 290 won (2.9%) from this year's hourly wage of 10,030 won, by saying "the worst situation was avoided" and urging for support measures to ease the burden on small and medium-sized enterprises and small business owners. This increase rate is the lowest among the first-year minimum wage increase rates of any government, except during the financial crisis under the Kim Dae-jung administration.
The Korea Chamber of Commerce and Industry commented on the 11th regarding the decision on next year's minimum wage, stating, "The government should consider the difficulties faced by small and medium-sized enterprises and small business owners due to domestic demand stagnation and high prices, and prepare additional support measures to alleviate their burden, actively working towards creating a business-friendly environment and deregulation." The Chamber added, "The fact that this agreement was reached through labor-management agreement for the first time in 17 years is highly commendable." The Korea Employers Federation also evaluated, "This minimum wage decision is the result of an agreement reached with the understanding that labor and management need to make some concessions and coordinate their positions to overcome the current complex crisis situation, rather than repeating existing conflicts." The Federation also expressed hope that "policies for economic recovery and livelihood stability will be implemented more swiftly, and that the minimum wage increase will not lead to side effects such as worsening management difficulties or job reductions, with careful policy supplements and support being provided."
At 11:18 p.m. the previous night, the Minimum Wage Commission decided on next year's minimum wage of 10,320 won. When converted to a monthly salary (based on a 40-hour workweek and 209 hours per month), it amounts to 2,156,880 won, which is 60,610 won more per month than this year's 2,096,270 won.




ehcho@fnnews.com Eunhyo Cho Reporter