S. Korea's minimum hourly wage to rise 5% to around US$ 7.40 next year
Updated: 2022-06-30 17:05:38 KST
The Minimum Wage Commission has set South Korea's minimum hourly wage for next year at nine,6-hundred-20 Korean won or about seven U.S. dollars and forty cents.
That's a five percent increase from the current minimum of around seven dollars a decision neither the business community nor labor unions are completely happy with amid rising inflation and living costs.
The two sides, despite rounds of negotiations and revised proposals, failed to reach an agreement Wednesday night.
"A minimum wage hike is essential to move forward to create new momentum for resolving the polarization of inequality."
"It's tough on businesses these days. The minimum wage must be stabilized for small and medium sized enterprises just scraping by."
This meant public interest representatives had to intervene and put their own proposal up for a vote.
Out of 27 members of the trilateral panel, twelve voted in support one voted against and there were ten abstentions.
Four labor representatives from the Korean Confederation of Trade Unions refused to take part at all.
"Under the current system, South Korea's minimum wage is determined through collective bargaining which doesn't consider the characteristics of industries, regions, or the economic climate.
It's important for experts to make a minimum wage proposal after reviewing the current situation first, and for the representatives to take that into account when negotiating."
The Labor Ministry has until August 5th to formally announce the new wage floor. which will take effect on January first.
Han Seong-woo, Arirang News.