Minimum Wage to Remain Uniform Across Sectors Next Year; Differential Application Rejected
Next year, the minimum wage will be uniformly applied across all sectors without differentiation. On June 18, the Minimum Wage Commission held its seventh plenary meeting at the Government Sejong Center to vote on whether to apply different minimum wages based on industry.
The vote resulted in 14 opposing votes, 11 in favor, and 1 invalid vote, failing to secure a majority among the attending members.
The vote included 8 of the 9 worker representatives, 9 employer representatives, and 9 public interest representatives, totaling 26 participants.
Previously, the employer side argued that sectors such as hospitality and food services, which are severely impacted by economic downturns, should have lower minimum wages compared to other industries. Conversely, the worker representatives opposed this, stating that applying lower minimum wages to specific sectors institutionalizes discrimination against workers.
Differential application of the minimum wage has been a contentious issue between labor and management each year, but it has not progressed to actual implementation. Notably, sector-based differentiation was legally possible but was only temporarily applied in the first year of the system in 1988.
The vote resulted in 14 opposing votes, 11 in favor, and 1 invalid vote, failing to secure a majority among the attending members.
The vote included 8 of the 9 worker representatives, 9 employer representatives, and 9 public interest representatives, totaling 26 participants.
Previously, the employer side argued that sectors such as hospitality and food services, which are severely impacted by economic downturns, should have lower minimum wages compared to other industries. Conversely, the worker representatives opposed this, stating that applying lower minimum wages to specific sectors institutionalizes discrimination against workers.
Differential application of the minimum wage has been a contentious issue between labor and management each year, but it has not progressed to actual implementation. Notably, sector-based differentiation was legally possible but was only temporarily applied in the first year of the system in 1988.
Kim Yo-jong Rejects G7's Call for North Korea's Complete Denuclearization
Kim Yo-jong, the Deputy Director of the Workers' Party of Korea, rejected the G7's demand for North Korea's complete denuclearization, labeling it an "overreach" and reaffirming the country's commitment to maintaining its nuclear arsenal. In a statement released on June 18 through the Korean Central News Agency, Kim described the G7's call for denuclearization as a "direct infringement of North Korea's constitution" and expressed strong dissatisfaction and condemnation.
She criticized the G7 as a "main culprit" undermining global peace and security and the international non-proliferation regime, asserting that they have no right to discuss or challenge North Korea's sovereign choices.
Kim emphasized that denuclearization is a matter that has already been conclusively settled, stating, "There is nothing more foolish than sitting idly by in the face of military threats accompanied by nuclear weapons," and reiterated that North Korea's nuclear capabilities are a legitimate means of self-defense against constant threats from adversaries.
She criticized the G7 as a "main culprit" undermining global peace and security and the international non-proliferation regime, asserting that they have no right to discuss or challenge North Korea's sovereign choices.
Kim emphasized that denuclearization is a matter that has already been conclusively settled, stating, "There is nothing more foolish than sitting idly by in the face of military threats accompanied by nuclear weapons," and reiterated that North Korea's nuclear capabilities are a legitimate means of self-defense against constant threats from adversaries.
China Strongly Opposes G7's Diversification of Critical Mineral Supply Chains
As the G7 nations united to reduce dependence on China for critical minerals such as rare earths, the Chinese government strongly protested against what it termed a disruption of international trade order. On June 18, Chinese Foreign Ministry spokesperson Lin Jian emphasized that safeguarding the stability of the global supply chain for critical minerals is China's consistent position, asserting that China's export control measures align with international practices for maintaining global peace and non-proliferation obligations.
He urged the G7 to adhere to market economy principles and cease actions that undermine international trade order based on rules created by a minority.
Earlier, on June 17, G7 leaders announced in a joint declaration their commitment to diversifying supply chains for critical minerals, including rare earths, lithium, and nickel. Although the declaration did not explicitly name China, it expressed deep concern over export controls and economic retaliation related to critical minerals, emphasizing a collective response to attempts at resource weaponization, which has been interpreted as a direct reference to China.
He urged the G7 to adhere to market economy principles and cease actions that undermine international trade order based on rules created by a minority.
Earlier, on June 17, G7 leaders announced in a joint declaration their commitment to diversifying supply chains for critical minerals, including rare earths, lithium, and nickel. Although the declaration did not explicitly name China, it expressed deep concern over export controls and economic retaliation related to critical minerals, emphasizing a collective response to attempts at resource weaponization, which has been interpreted as a direct reference to China.
Kyiv and Moscow Engage in Largest Drone and Missile Strikes in Two Years
Russia and Ukraine launched large-scale mutual airstrikes targeting each other's capitals overnight. On June 18, reports from Reuters and AFP indicated that the Ukrainian capital, Kyiv, faced concentrated bombardment from Russian ballistic missiles and drones. This attack came just a week after a major airstrike on June 15 that resulted in two fatalities.
Kyiv authorities promptly issued evacuation orders to residents, and air raid alerts were activated across Ukraine, with one casualty reported in the northeastern Sumy region due to a drone attack.
Simultaneously, Ukraine retaliated with a significant drone strike against the Russian capital, Moscow. This assault caused a fire at an oil refinery within the city and disrupted operations at Sheremetyevo Airport, partially paralyzing urban functions.
Russian military and local authorities reported that they shot down a total of 500 Ukrainian drones overnight, with 180 of those targeting Moscow. Local media described this as the largest attack on Moscow in two years.
Kyiv authorities promptly issued evacuation orders to residents, and air raid alerts were activated across Ukraine, with one casualty reported in the northeastern Sumy region due to a drone attack.
Simultaneously, Ukraine retaliated with a significant drone strike against the Russian capital, Moscow. This assault caused a fire at an oil refinery within the city and disrupted operations at Sheremetyevo Airport, partially paralyzing urban functions.
Russian military and local authorities reported that they shot down a total of 500 Ukrainian drones overnight, with 180 of those targeting Moscow. Local media described this as the largest attack on Moscow in two years.
Bank of England Holds Interest Rate Steady at 3.75% Amid Ongoing Oil Price Risks
The Bank of England (BOE) has decided to maintain its benchmark interest rate at the current level, continuing a cautious monetary policy stance. On June 18, the BOE announced that it would keep the rate at 3.75% following a meeting of its Monetary Policy Committee. This marks the fourth consecutive month of holding the rate steady since the last cut in December of the previous year.
In the vote, 7 out of 9 committee members supported the decision to hold the rate, while 2 members advocated for a 0.25% increase to 4.0%, aligning with market expectations.
Although the UK's consumer price index (CPI) inflation rate has dropped to 2.8%, indicating a slowdown in price increases, the central bank remains vigilant. Despite a recent decline in international oil prices due to a memorandum of understanding between the U.S. and Iran and promises to reopen the Strait of Hormuz, the BOE believes it is premature to declare that inflation risks have been fully resolved.
The Monetary Policy Committee explained that the ongoing effects of rising energy prices could lead to a resurgence in inflation this year, posing significant risks of secondary impacts on wages and overall price setting.
In the vote, 7 out of 9 committee members supported the decision to hold the rate, while 2 members advocated for a 0.25% increase to 4.0%, aligning with market expectations.
Although the UK's consumer price index (CPI) inflation rate has dropped to 2.8%, indicating a slowdown in price increases, the central bank remains vigilant. Despite a recent decline in international oil prices due to a memorandum of understanding between the U.S. and Iran and promises to reopen the Strait of Hormuz, the BOE believes it is premature to declare that inflation risks have been fully resolved.
The Monetary Policy Committee explained that the ongoing effects of rising energy prices could lead to a resurgence in inflation this year, posing significant risks of secondary impacts on wages and overall price setting.
Indonesia Raises Interest Rates for Third Time in a Month to Support Rupiah
Indonesia's central bank (BI) has implemented another interest rate hike, aimed at defending the value of the rupiah against the U.S. dollar. On June 18, the BI announced during its regular monetary policy meeting that it would raise the 7-day reverse repo rate from 5.50% to 5.75%, an increase of 0.25 percentage points.
This marks the third rate hike in the past month and the highest level since May of last year. Previously, the BI surprised markets with a 0.50 percentage point increase on May 20, followed by another 0.25 percentage point hike on June 9, maintaining a tightening stance. According to a survey conducted by Reuters, 20 out of 35 economic experts had anticipated this additional 0.25 percentage point increase.
This marks the third rate hike in the past month and the highest level since May of last year. Previously, the BI surprised markets with a 0.50 percentage point increase on May 20, followed by another 0.25 percentage point hike on June 9, maintaining a tightening stance. According to a survey conducted by Reuters, 20 out of 35 economic experts had anticipated this additional 0.25 percentage point increase.
* This article has been translated by AI.
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