Minimum Wage for Next Year Set at 10,700 Won Per Hour… 3.7% Increase

[Anchor]

The minimum wage for next year has been finalized at 10,700 won per hour. This is an increase of 380 won, or 3.7%, from this year's minimum wage of 10,320 won per hour.

Reporter Chae Heesun has the report.

[Reporter]

Following a marathon meeting lasting over eight hours, the Minimum Wage Commission decided on 10,700 won per hour as next year's minimum wage.

This marks an increase of 380 won, or 3.7%, from this year's rate.

Previously, labor representatives had initially proposed 12,000 won, a 16.3% increase from this year, while management had proposed freezing it at 10,320 won.

The two sides subsequently narrowed the gap by presenting a series of revised proposals.

Ultimately, in their 13th round of negotiations, labor proposed a final offer of 10,730 won per hour, while management proposed 10,700 won. However, the two sides failed to reach an agreement, with a difference of 30 won remaining.

The issue was put to a vote among the 27 registered committee members. The result was 11 votes for the labor proposal, 15 votes for the management proposal, and one invalid vote, leading to the adoption of the management's proposal as next year's minimum wage.

If labor and management reach a consensus within the deliberation range, a joint agreement is adopted; however, if they cannot narrow their differences, the minimum wage is determined through a vote.

Labor representatives expressed their disappointment regarding the decision, stating, "It is a highly disappointing result that fails to even guarantee a minimum cost of living."

Management also released a statement saying, "We regret that we could not freeze the wage given the difficult business reality faced by small and medium-sized enterprises and small business owners."

Under the Minimum Wage Act, the Minimum Wage Commission will submit the proposal for next year's minimum wage to the Ministry of Employment and Labor.

The Minister of Employment and Labor must finalize and announce the minimum wage for next year by August 5, and it will take effect on January 1 of next year.

(Video reporting: Lee Jae-young, Video editing: Kim Yoon-sung)
※ Please note: This article was translated by AI and may contain errors.