The minimum wage for next year has been set at 10,700 won per hour. The objections raised by labor and small business representatives were not accepted.
The Ministry of Employment and Labor announced on August 5 that the minimum wage for 2027 has been determined and officially announced at 10,700 won per hour, an increase of 380 won (3.7%) from this year's minimum wage of 10,320 won.
The monthly equivalent, based on a 40-hour work week and 209 hours per month, is 2,236,300 won. This rate will apply uniformly across all businesses without industry differentiation, and no separate minimum wage will be applied to contract workers.
Previously, the Minimum Wage Commission voted on the minimum wage for next year during its 14th plenary meeting on July 14. Although labor and management narrowed the gap in their final proposals to 30 won, they could not reach an agreement, and the worker representative's proposal of 10,700 won was adopted through a vote.
This year's discussions focused on the application of differentiated minimum wages by industry and the issue of a separate minimum wage for contract workers, particularly delivery riders, but all proposals were rejected. Notably, the issue of applying minimum wage to contract workers was officially raised for the first time. Public interest representatives recommended a comprehensive review of the entire system, including the criteria for determining minimum wage applicability.
Following the Minimum Wage Commission's decision, the Labor Ministry operated an objection period from July 16 to 27. During this time, the Korean Confederation of Trade Unions (KCTU) and the Korea Federation of Small and Medium Businesses (KOSME) each filed objections. The KCTU raised concerns about the failure to apply a separate minimum wage for contract workers, while KOSME pointed out that the ability to pay and industry-specific conditions were not adequately reflected.
However, the Labor Ministry did not accept either party's objections, considering the intent of the Minimum Wage Act and the deliberation and decision-making process of the Minimum Wage Commission. Consequently, the minimum wage for next year was confirmed as originally proposed without requesting a re-examination by the commission.
The Labor Ministry stated, "We plan to strengthen promotion and guidance to ensure compliance with the minimum wage in the field and to carry out workplace inspections and supervision."
* This article has been translated by AI.
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