Minimum Wage Gap Narrows to 1,290 Won in Ongoing Labor Negotiations

At the 11th plenary meeting of the Minimum Wage Commission held on July 2 at the Government Sejong Center, user representative Ryu Ki-jung of the Korea Employers Federation and worker representative Ryu Gi-seop of the Korean Confederation of Trade Unions listen intently to the speakers with serious expressions. Photo: Yonhap News — At the 11th plenary meeting of the Minimum Wage Commission held on July 2 at the Government Sejong Center, user representative Ryu Ki-jung of the Korea Employers Federation and worker representative Ryu Gi-seop of the Korean Confederation of Trade Unions listen intently to the speakers with serious expressions. [Photo: Yonhap News]

Amid ongoing debates over next year’s minimum wage, the gap between labor and management proposals has narrowed to 1,290 won.

The Minimum Wage Commission convened its 11th plenary meeting on July 2 at the Government Sejong Center to discuss the minimum wage level. On this day, labor representatives proposed a fourth revised plan of 11,700 won per hour, while management representatives suggested 10,410 won.

Previously, in the third revised proposal, both sides had suggested 11,800 won and 10,890 won per hour, respectively. The gap in the fourth revised proposal has decreased by 120 won compared to the 1,410 won difference in the third proposal.

Tensions were evident from the start of the meeting. Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, stated, "Last year's median income for the basic livelihood security system was 2,392,000 won, and the upper limit of the actual living expenses for single workers was 2,398,000 won, showing a minimal gap. Therefore, a proactive and bold increase is necessary as the current wage system fails to adequately support vulnerable workers."

Conversely, management representatives maintained their stance on controlling the minimum wage increase. Ryu Ki-jung, Executive Vice President of the Korea Employers Federation, remarked, "Including the weekly holiday allowance in the labor union's proposed hourly wage would exceed 14,000 won per hour. This would increase the actual labor cost of hiring one minimum wage worker by approximately 5 million won annually, which is an unbearable burden for small and medium-sized enterprises and self-employed individuals already facing financial limits."

Public interest representatives emphasized the need to bridge the gap between the two sides. Sung Jae-min, Deputy Director of the Korea Labor Institute and secretary of the public interest committee, stated, "Given the significant differences in opinions, it is crucial to make genuine efforts to narrow these gaps. We must approach this with social responsibility in mind and strive for a wise and responsible conclusion that expands common ground."

* This article has been translated by AI.