Labor Unions Demand Minimum Wage of 10,800 Won... KCCI Says "Shock to Small Business Owners and Small Enterprises"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Regarding the labor sector's demand for a minimum wage of 10,800 KRW per hour next year, the Korea Employers Federation (KEF) stated on the 24th that "stability in the minimum wage must take priority to support self-employed individuals, small business owners, and small and medium-sized enterprises (SMEs) who are in difficult situations," expressing opposition.

Ryu Ki-jung, Executive Director of KEF and an employer representative, pointed out at the 5th plenary meeting of the Minimum Wage Commission that the labor sector's demand of 10,800 KRW "is delivering a severe shock to small business owners and micro and small enterprises who are barely surviving."

The labor sector, including the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU), held a press conference demanding a 23.8% increase in next year's minimum wage to 10,800 KRW. This amount is 2,080 KRW higher than this year's minimum wage of 8,720 KRW.

Executive Director Ryu expressed regret, saying, "It is very unfortunate that the labor sector announced their initial demand before the deliberation on sectoral application was completed, as this is not the usual procedure or process."

He added, "From an overall economic perspective, one person's income inevitably becomes another person's cost," expressing concern that "if one side is burdened excessively, side effects are bound to occur."

He further noted, "It has become as difficult as picking stars in the sky for young people to find part-time jobs, and even if they do, the short working hours force them to look for other positions elsewhere, which is a well-known fact," and pointed out, "Self-employed individuals who continue their livelihoods through loans often cannot hire employees and end up working alone or mobilizing family members."

He explained, "The increase in the minimum wage has been decided at a pace that the market finds difficult to accept, and the direct impact of the COVID-19 pandemic has been concentrated on small business owners and micro and small enterprises."

He also lamented, "Although the economy is said to be recovering, this is only true for some sectors, and for those who have to bear the minimum wage, every day is a series of sighs," adding, "To make matters worse, the implementation of the 52-hour workweek, expansion of paid legal holidays, and expansion of substitute holidays are pushing SMEs into a dead end."

He emphasized, "For self-employed individuals, small business owners, and micro and small enterprises who are in difficult situations, stability in the minimum wage must be the top priority," and stressed, "Given the large differences in payment capacity across sectors due to the increased minimum wage level, sectoral differentiation should be implemented next year."

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