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Minimum Wage Commission Sets Hourly Rate at 10,700 Won

The 3.7% increase was adopted by commission vote after labor and management failed to agree and could add pressure on small firms and low‑paid workers

Overview

  • The Minimum Wage Commission finalized a 10,700 won hourly minimum wage for next year, marking a 3.7 percent rise from the current 10,320 won.
  • Negotiators had narrowed their proposals to a 200‑won gap before the vote, with labor offering 10,820 won and management 10,620 won after public interest members proposed a facilitation range of 10,600–10,860 won.
  • Commission members ran through many rounds of revised offers and, when consensus could not be reached, the panel put the decision to a majority vote and adopted the rate closer to management’s position.
  • The Federation of Korean Industries said the decision will worsen financial strain on micro‑enterprises and the self‑employed and criticized the commission’s rejection of sector‑specific lower rates for struggling industries.
  • The MWC is a 27‑member panel with nine representatives each from labor, management and the public, and its annual review must be completed ahead of a formal wage announcement by the labor minister, a step that will set the new rate in law and affect low‑wage workers and small businesses.