The Ministry of Employment and Labor said the Minimum Wage Commission held its first plenary meeting Monday at the Government Complex Sejong. The commission selected Sookmyung Women’s University professor Kwon Soon-won as its new chair, received a wage-review request sent by Employment and Labor Minister Kim Young-hoon on March 31, and discussed the review schedule. During the meeting, members affiliated with the Korean Confederation of Trade Unions walked out in protest of Kwon’s appointment.
The minimum wage system, introduced in 1988, has generally trended upward. The minimum wage for 2026, set last year, rose 2.9% (290 won) from the previous year to 10,320 won an hour, up 59.5% from 2017’s 6,479 won.
Labor groups say the latest increase was the lowest for a first year under any administration, and they cite a decline in real wages. Over the past three years, the minimum wage rose an average of 2.4%, while consumer prices increased 2.7% over the same period, they said.
Ryu Gi-seop, secretary-general of the Federation of Korean Trade Unions, said the minimum wage is failing to perform its basic role of income protection and redistribution. He also said the number of low-wage workers in the labor market has been growing each year, underscoring the need for an increase.
Business groups pushed back, saying the burden on small merchants is heavy as domestic demand recovery remains delayed and uncertainty has intensified, including due to the war in the Middle East. They also pointed to severe debt levels among the self-employed and called for moderation.
Ryu Gi-jeong, executive director of the Korea Employers Federation, said self-employed people already carry debt equal to 3.4 times their annual income as of the third quarter of last year. He said the economic shock from the Middle East war is spreading broadly and that the wage decision should reflect employers’ ability to pay.
By law, the commission is supposed to finish deliberations within 90 days of the minister’s request, meaning by June 29. However, the deadline is advisory and is often missed, raising expectations that talks could run into early July this year as well.
Kwon urged labor, management and the public interest members to keep talking through their differences. He called for intensive deliberations so the minimum wage can be set at a reasonable level despite sharply divided views.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.