SME Industry "Disappointed with the Increase Decision"... Next Year's Minimum Wage Set at '8,720 Won'

Minimum Wage Commission to Raise Minimum Wage by 130 Won Compared to This Year

Headquarters of the Korea Federation of Small and Medium Business

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Small and Medium Business (KSMB) expressed regret on the 14th through a statement regarding the Minimum Wage Commission's decision to raise the 2021 minimum wage by 1.5% (130 won) from this year to 8,720 won.

The small and medium business sector had been demanding at least a freeze on next year's minimum wage. The sector stated, "Small and medium enterprises have faced unprecedented difficulties over the past three years due to rapid minimum wage increases and the COVID-19 pandemic. Therefore, our sector earnestly appealed for at least a freeze in order to protect jobs."

Despite the challenging circumstances, the small and medium business sector plans to comply with the Minimum Wage Act and make every effort to maintain employment.

The KSMB emphasized, "To alleviate the management burden on micro and small businesses and protect vulnerable jobs resulting from this minimum wage increase, swift and active government support and roles, including the expansion of employment retention subsidies, are absolutely necessary. Furthermore, amid growing economic uncertainties, legal and institutional improvements to the minimum wage system must be made to properly reflect companies' payment capacities and economic conditions going forward."

This content was produced with the assistance of AI translation services.