As discussions on next year's minimum wage reach a critical stage, labor and management are engaged in a tense standoff. Labor representatives argue for a significant increase to ensure the livelihood of low-wage workers and stimulate domestic consumption, while management claims that small businesses and self-employed individuals are at their financial limits and call for a more measured approach.
On July 9, the Minimum Wage Commission held its 13th plenary meeting at the Government Sejong Center to continue deliberations on the minimum wage for the upcoming year. During the previous meeting on July 7, labor proposed a minimum wage of 11,450 won, while management suggested 10,460 won, resulting in a gap of 990 won between the two sides.
Labor advocates emphasize the need for an increase due to declining real wages and polarization in the labor market. Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, stated, "Raising the minimum wage to effectively increase the disposable income of low-wage workers is a direct policy tool for stabilizing livelihoods and recovering domestic consumption. The minimum wage is essential for supporting workers' livelihoods and sustaining local businesses."
Lee Mi-sun, Deputy Chair of the Korean Trade Union Confederation, added, "The inflation rate announced by the government differs from the cost of living that workers face daily. The minimum wage should be determined based on actual household living expenses, perceived living costs, and the guarantee of real wages." She also pointed out that labor should not be the only side pressured as the public interest committee narrows the discussion.
Conversely, management voices concerns about the burdens of increasing the minimum wage. Ryu Gi-jeong, Executive Vice President of the Korea Employers Federation, remarked, "The minimum wage has already reached a high level, and the ability of businesses to absorb further increases is at its limit. The burden of wage increases is widespread, and we should not conclude discussions in a routine manner."
Yang Ok-seok, head of the Human Resources Policy Division at the Korea Federation of Small and Medium Businesses, stressed, "We must not set a minimum wage that exceeds the payment capacity of businesses due to pressure from deadlines. To ensure worker stability, support from government social safety nets, such as work incentives and living assistance, is also necessary."
Public interest committee members are emphasizing the importance of reaching a consensus. Sung Jae-min, Deputy Director of the Korea Labor Institute, stated, "Discussions on the minimum wage illustrate how to harmonize differing interests and values through social dialogue. I urge both labor and management to show a proactive attitude and take a step closer together."
Chairman Kwon Soon-won of the Minimum Wage Commission also noted, "The minimum wage belongs to both workers and employers, and the public interest committee's role is to support and mediate so that both sides can find an optimal balance. I ask that labor and management actively work towards a significant compromise to conclude discussions as soon as possible."
During the meeting, both sides are expected to propose additional amendments as they engage in final negotiations. However, if the gap between their positions remains wide, there is a possibility that the public interest committee will suggest a mediation period and encourage a vote or agreement.
* This article has been translated by AI.
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