Convenience Store Owners Say "We Want to Pay, But Can't" Amid Minimum Wage Increase

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Convenience store owners strongly opposed the decision on the 2024 minimum wage, set at 9,160 won, a 5.1% increase from this year, stating, "Even if we want to pay, we are unable to."

The Korea Convenience Store Owners Association issued a statement on the same day, saying, "We cannot accept the decision to raise the minimum wage next year, which ignores the reality of self-employed workers, including convenience stores."

They explained, "After deducting labor costs, monthly rent, and various taxes from the average monthly sales per store last year, the net profit for store owners is just over 2 million won," adding, "There are still many convenience stores that cannot afford to pay the minimum wage. Until now, store owners have reduced labor costs by increasing working hours, but from next year, when the increased minimum wage applies, even that will not be possible."

The National Convenience Store Franchise Association, a convenience store franchise group, also pointed out, "It is like putting all the COVID-19 damages on self-employed workers." Kye Sang-hyuk, president of the National Convenience Store Franchise Association, criticized, "Considering weekly holiday pay, the four major social insurance premiums, and severance pay, the minimum wage paid on site already exceeds 10,000 won. Most of the public interest members who cast the deciding vote at the Minimum Wage Commission have never paid a salary before. The discussion started on a tilted playing field."

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