KCCI: "Next Year's 5.1% Minimum Wage Increase, an Irresponsible Decision That Hinders the Economy"

[Asia Economy Reporter Ki-min Lee] The Korea Employers Federation (KEF) criticized the decision on the 13th to set next year's minimum wage at 9,160 won per hour, a 5.1% increase from this year, calling it "an irresponsible decision that is tantamount to hampering our economy, which is somehow enduring the COVID-19 crisis."

In a statement released that day, KEF expressed "serious concern and regret over the decision to raise the minimum wage significantly, ignoring the desperate cries of small and medium-sized enterprises and small business owners who are fighting for survival amid difficult business conditions."

It added, "We clearly state that the 5.04% minimum wage increase rate is unacceptable when comprehensively considering the statutory decision factors and economic conditions such as payment capacity," emphasizing that "this minimum wage hike will impose a fatal additional burden on businesses with fewer than 30 employees, where about 83% of minimum wage workers are employed."

KEF also pointed out, "It is evident that this will push small businesses and small business owners, who are already struggling to maintain the status quo, to the brink," and "many vulnerable workers are inevitably at risk of being pushed out of the labor market due to the minimum wage increase."

Furthermore, KEF stated, "In the current employment crisis, where over one million young people are in a potential state of unemployment, the high minimum wage increase raises deep concerns once again," urging, "The government should actively seek measures to mitigate the adverse effects on the national economy caused by this."

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