The Korea Federation of Micro Enterprise submitted a written objection to the Ministry of Employment and Labor today (July 27) regarding the minimum wage proposal for 2027 and officially urged a reconsideration.

Song Chi-young, chairman of the Korea Federation of Micro Enterprise, stated at a press conference in front of the Ministry of Employment and Labor in Sejong, "Due to the minimum wage hike, the monthly salary per worker rises by about 79,000 won, and the annual salary by about 95,000 won." He added, "Businesses employing four workers will have to shoulder over 10 million won in additional costs annually, including the burden of the four major public insurances."

He also pointed out that amid sluggish economic conditions and declining profits, the minimum wage hike could accelerate staff reductions by small business owners.

In particular, he argued that the current minimum wage proposal is a single-rate application that fails to reflect differences in payment capacity across industries, and that it could lead to a deterioration in the quality of employment, such as an increase in ultra-short-term workers.

According to the federation, 4 out of 10 small business owners have an average monthly operating profit of less than 2 million won.

This is argued to be lower than the monthly converted minimum wage of 2,236,300 won.

Along with the reconsideration of the minimum wage, the federation demanded that the government and the National Assembly prepare management stability support measures, including △ strengthening the representation of small business owners within the Minimum Wage Commission, △ determining the minimum wage biennially, △ applying differentiated rates by industry, and △ reviving the job stability fund.

This is the first time in four years since 2022 that both labor and management groups have simultaneously filed objections to the minimum wage proposal.

However, projections indicate that the possibility of it actually leading to a reconsideration is low.

Since the minimum wage system was introduced in 1988, there have been multiple instances where labor and management groups objected to minimum wage proposals, but the Minister of Employment and Labor has never accepted such objections or requested a reconsideration by the Minimum Wage Commission.

(Reported by Kim Minjeong | Video Editing by Jang Yu-jin | Design by Lee Jeong-ju | Produced by SBS Digital News)