Over 90% of Korean Companies Want Adjustment in Pace of Minimum Wage Increase

In a recent survey with 100 South Korean companies, 39.4 percent answered that the pace of minimum wage increase has to be adjusted and 52.1 percent answered that the pace should be adjusted.

In addition, 54.8 percent answered that next year’s minimum wage needs to be equal to this year’s and 39.8 percent answered that the increase should be less than 3 percent. The Minimum Wage Commission is planning to hold its eighth plenary meeting on next year’s minimum wage on July 13. Its decision has to be made on July 15 at the latest in that the final announcement is scheduled for Aug. 5.

South Korean enterprises are strongly calling for the government to adjust the pace as the minimum wage already rapidly increased for several years and COVID-19 is continuing to affect their business. In the commission, employers’ current offer is a one percent cut from this year’s minimum wage. On the other hand, employees’ offer is an increase of 9.8 percent.

In the meantime, 47.3 percent and 8.6 percent of the respondents are negative and very negative about the government’s labor law amendment attempt for ILO convention ratification and unemployed persons’ union membership. Only 1.1 percent are positive and 43 percent are neutral.