South Korea's Minimum Wage Commission Begins Annual Wage Review
Labor and business sectors set for heated debate over next year's minimum wage as piece-rate workers' coverage debated
Quick Look
- South Korea's Minimum Wage Commission held its first meeting Tuesday to set next year's minimum wage, currently at 10,320 won ($7.02) per hour.
- Labor unions are expected to request a steeper increase citing rising prices and declining real wages, while businesses have called for a wage freeze in opening proposals for five consecutive years.
- The commission will also discuss whether to apply a separate minimum wage to piece-rate workers like delivery riders, who are currently excluded from the legal minimum wage.
AI-generated summary
Why It Matters
South Korea conducts annual minimum wage reviews through the Minimum Wage Commission, a tripartite body including labor, business and public interest representatives. The commission has frequently missed its 90-day deadline for submitting recommendations. Current minimum wage is 10,320 won per hour, up 2.9% from the previous year.
SEOUL, April 21 (Yonhap) -- The Minimum Wage Commission was set to hold the first of what will likely be many heated meetings Tuesday to set the country's minimum wage for next year. South Korea's minimum hourly wage currently stands at 10,320 won (US$7.02), up 2.9 percent from that of last year. The labor sector is widely expected to request a steeper increase for next year, with both of the country's two major umbrella unions arguing for a hike, citing rising prices and declining real wages. Businesses, on the other hand, will likely resist, having called for a wage freeze in their opening proposals for the past five years, according to market observers. This year's review is also set to discuss whether a separate minimum wage should apply for piece-rate workers, such as delivery riders, at Labor Minister Kim Young-hoon's request. Such workers are paid by the work they perform and have been excluded from the legal minimum wage. The commission, which includes labor, business and public interest representatives, is required to submit its recommendation within 90 days of the labor minister's annual request, a deadline it has often failed to meet.
What to Watch
AI outlook — possibilities, not facts
The Minimum Wage Commission will likely miss its 90-day deadline again, as it has done frequently in the past
Very likely · Within months
A modest increase in minimum wage will be approved, less than labor's request but above zero
Likely · Within months
Open Questions
- What specific increase will labor unions request?
- Will businesses maintain their position for a wage freeze?
- Will piece-rate workers be included under the minimum wage law?
- Will the commission meet its 90-day deadline?
