The Ministry of Economy and Finance issued a press release based on OECD Economic Outlook 2019 with its minimum wage part omitted. It is being criticized for the seemingly intentional omission.
The OECD released the report on May 21 (local time), lowering its South Korean economic growth forecast for this year from 2.6 percent to 2.4 percent. The ministry mentioned in its abridged press release that the South Korean economy is likely to slow down this year due to a decrease in exports attributable to global trade conditions and declines in investment and employment attributable to manufacturing sector restructuring.
The press release also said that the OECD mentioned labor productivity improvement as one of the most urgent issues the South Korean government needs to handle and that the OECD supports the South Korean government’s expansionary fiscal policy.
However, the press release mentioned nothing about the minimum wage part of the OECD report, in which it is written that the 29 percent increase in minimum wage during last year and this year hampered an increase in the employment of low-skilled workers and that the pace of minimum wage increase in South Korea is too fast.