People Power Party's Kim So-hee Proposes Bill for Differential Minimum Wage by Business Type and Region

People Power Party Representative Kim So-hee has proposed an amendment to the Minimum Wage Act that would allow for the differential application of the minimum wage based on business size and region.

During a press conference held on the afternoon of July 15, 2026, Representative Kim argued for the differential application of the minimum wage, stating, "Small business owners who are at the limit of their ability to pay wages are being driven to the brink of closure due to the added burden of minimum wage hikes."

Explaining the proposed amendment, Kim said, "I have supplemented the decision criteria so that the minimum wage is determined by comprehensively considering the actual 'ability to pay' of business operators and the 'impact on employment stability.'"

She added, "I have also included a legal basis to allow the minimum wage to be set separately by 'business size' and 'region.'"

The bill also includes a provision requiring that deliberations on whether to apply differential minimum wages by industry, size, and region be conducted prior to the deliberation of the minimum wage amount itself.

"Further increasing the minimum wage is no different from effectively forcing small business owners to close their businesses," Kim emphasized. "If small business owners shut down, the workers employed there will also lose their jobs, ultimately leading to a vicious cycle that threatens the livelihoods of the most vulnerable in our society."

The Minimum Wage Commission finalized the minimum wage for next year at 10,700 won per hour on July 14, 2026.

This represents a 3.7 percent increase compared to this year's minimum wage.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.