The Small Business Association has initiated a legal challenge against the government's decision to set the minimum wage for 2027 at 10,700 won per hour, after the government rejected their request for a review.
On August 5, the association announced that it had filed a lawsuit at the Seoul Administrative Court seeking to annul the minimum wage set by the Ministry of Employment and Labor on July 16.
This marks the second time the association has taken legal action since the minimum wage saw a record increase of 16.4% in 2018. The plaintiffs criticized the recent decision for ignoring the financial capabilities of small business owners and for excluding differentiated application by industry, which they argue constitutes a significant abuse of discretion.
Prior to filing the lawsuit, the association held a press conference in front of the Seoul Administrative Court in Yangjae-dong, condemning the Ministry of Employment and Labor's rejection of their appeal against the 2027 minimum wage, which was submitted on July 27.
During the conference, the association urged the National Assembly and the government to implement comprehensive support measures for small businesses, including the abolition of the weekly holiday pay, biennial minimum wage determinations, and the revival of job stability funds.
The plaintiffs plan to pursue a constitutional review alongside the administrative lawsuit.
Meanwhile, on the same day, the Ministry of Employment and Labor confirmed the minimum wage for 2027 at 10,700 won per hour, an increase of 380 won (3.7%) from the current minimum wage of 10,320 won per hour.
Song Chi-young, president of the Small Business Association, stated in a press release, "We filed a legitimate objection to the uniform increase proposed by the Minimum Wage Commission, but the Ministry of Employment and Labor mechanically dismissed it, ignoring the cries from the field. We strongly condemn the irresponsible desk-bound administration of the Ministry, especially in light of the record high number of 624,000 business closures in the first half of this year, the highest ever recorded for a half-year period."
* This article has been translated by AI.
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