The business community has voiced concerns following the final decision to set next year's minimum wage at 10,700 won per hour.

The Federation of Korean Industries (FKI) stated, "We are disappointed that the minimum wage was set at 10,700 won, a rate exceeding the previous year's increase of 2.9 percent, despite the hope of small business owners for a freeze."

The FKI pointed out, "It is particularly regrettable that the proposal to apply a differential minimum wage for sectors such as accommodation and food services, which have already reached their limit in terms of payment capacity, was rejected."

The federation expressed concern that "this decision will exacerbate the difficulties faced by small businesses and self-employed individuals," adding that "it will also have a negative impact on jobs for vulnerable groups, including young people and low-income earners, who are directly affected by the minimum wage."

The FKI stated, "We hope for institutional improvements that would institutionalize the application of minimum wages by industry and ensure that the payment capacity and productivity of employers are fully considered in the decision-making process."

The Korea Chamber of Commerce and Industry (KCCI) also commented, "We believe this minimum wage hike is the result of the Minimum Wage Commission's careful deliberation on internal and external economic conditions and the receptivity of the field." However, it added, "Given that the burden on self-employed individuals and small and medium-sized enterprises is already significant, the decision will be felt as a considerable weight in the field."

The KCCI added, "We hope for policy support to alleviate the burden on small business owners and maintain employment. We also look forward to the start of discussions on a decision-making method that reflects objective indicators and the actual payment capacity of the field, so that the conflict surrounding the minimum wage decision does not repeat every year."

The Minimum Wage Commission decided on next year's hourly minimum wage at 10,700 won, an increase of 3.7 percent or 380 won from this year, during its 14th plenary session held the previous day.

Earlier, the Korea Enterprises Federation (KEF) also pointed out immediately after the decision the previous day that "it should have been frozen, considering the difficult management reality of small and medium-sized enterprises and small business owners, as well as their payment capacity, which has reached its limit."

The KEF stated, "We express our deep regret once again that a single minimum wage will be applied to all industries next year, even in a situation where field receptivity is significantly low, with the rate of workers receiving less than the minimum wage exceeding 30 percent in some sectors due to cumulative minimum wage hikes."

(Photo: Yonhap News)