The economic sector has expressed concerns over the final decision to set the minimum wage for 2027 at 10,700 won per hour.
On July 15, the Korea Economic Association stated, "Given the dual challenges of sluggish sales and rising costs faced by small businesses and self-employed individuals due to high exchange rates and inflation, we are disappointed by the decision to set next year's minimum wage at 10,700 won." They added, "It is particularly unfortunate that the differentiated application of minimum wage for sectors like hospitality and food service, which have reached their payment capacity limits, was not realized."
The Minimum Wage Commission held its 14th plenary meeting the previous day and decided to raise the minimum wage by 3.7% (380 won) from this year, surpassing last year's increase rate of 2.9%.
The Korea Economic Association warned, "This decision is expected to exacerbate the difficulties faced by small businesses and self-employed individuals, and it will negatively impact job opportunities for vulnerable groups such as youth and low-income workers who are directly affected by the minimum wage."
They further expressed hope for a more rational minimum wage determination process in the future, advocating for the institutionalization of differentiated applications by industry and prioritizing employers' payment capacity and productivity in the decision-making process.
The Korea Employers Federation also pointed out immediately after the minimum wage decision that, considering the challenging management realities and payment capacity limits of small and medium-sized enterprises and small businesses, the wage should have been frozen.
They added, "Despite the accumulated minimum wage increases leading to over 30% of certain sectors paying below the minimum wage, we express deep regret that a single minimum wage will be applied across all sectors again next year, given the significantly low acceptance in the field."
* This article has been translated by AI.
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