Starting January 1st next year South Korean workers will be paid at least 9,160 Korean won or around 8 U.S. dollars per hour.
This is up 5.1 percent from this year's hourly minimum wage.
The changes mean someone working 8 hours a day, 5 days a week, with no overtime would earn around 320 dollars a week.
The labor ministry officially announced the change on Thursday saying that it will be applied equally across all industries.
The Minimum Wage Commission which is composed of representatives from labor, business and the general public had earlier set the rate on July 12th.
Thursday's announcement comes after a legally mandated period of review in which three business groups including the Korea Enterprises Federation filed objections saying that an increase of more than 5-percent in minimum wage is impossible for small businesses to handle.
But the ministry rejected the complaints and upheld the commission's decision without making any changes.
The minimum wage negotiations held last month were centered on the economic downfall from the pandemic with labor representatives demanding an increase and business representatives calling for a freeze in the minimum wage before reaching a final decision.
Bae Eun-ji, Arirang News.