[Anchor]

The decision on next year's minimum wage has once again missed the legal deadline. Labor groups are calling for a significant increase due to rising inflation, while the business sector argues that small and medium-sized enterprises are at their breaking point. The two sides remain at a stalemate.

Reporter Baek Woon has the story.

[Reporter]

Opinions remain divided even over the current minimum wage of 10,320 won per hour.

Young people say that with rising rent and food costs, the current minimum wage is barely enough to get by.

[Choi Hee-yeol/University Student: I think it is difficult to cover food expenses or rent, so I believe the minimum wage should at least reflect the inflation rate.]

Meanwhile, self-employed business owners express their burden, claiming that the current minimum wage is already too high.

[Ko Jang-soo/Cafe Owner: I used to employ eight people, but now we are barely holding on with four. If labor costs increase further, the first thing I would have to consider is cutting one more staff member.]

Labor and management, who are negotiating next year's minimum wage, failed to reach a conclusion by the legal deadline of yesterday, June 29.

The gap between the two sides is 1,680 won, with labor demanding an increase to 12,000 won and management calling for a freeze at the current 10,320 won.

Labor groups argue that the average minimum wage increase over the past three years has failed to keep pace with inflation, and that a monthly income of 2.5 million won must be guaranteed to cover basic living costs.

[Lee Mi-sun/Vice Chair of the Korean Confederation of Trade Unions (June 25): The 12,000 won minimum wage demanded by labor is not for luxury or savings. It is a survival cost for living a minimum, decent life.]

On the other hand, the business sector counters that the ability of small and medium-sized enterprises and small business owners to pay has reached its limit due to accumulated burdens from high inflation and raw material costs.

[Ryu Ki-jung/Executive Director of the Korea Enterprises Federation: When looking at our country's minimum wage relative to the median wage, average wage, and annual after-tax income, it is already higher than the average of G7 countries.]

Experts suggest that even if the minimum wage is raised, providing policy support to reduce the burden on small business owners could be an alternative.

[Kim Ki-seung/Professor of Economics at Pusan National University: I believe we can reduce the burden on small business owners through measures such as social insurance premium support, tax incentives, digital transformation support, and productivity improvement consulting.]

The Minimum Wage Commission has requested both labor and management to submit revised proposals at the 10th plenary session today, June 30. Attention is now focused on whether the two sides can narrow their differences.

Reported by Lee Moo-jin | Video by Jung Yong-hwa | Graphics by Hwang Se-yeon | VJ by Jung Han-wook