'Yoon Pledge' on Sector-Specific Minimum Wage Differential Application Fails... Single Application Continues Next Year

President Yoon Suk-yeol's pledge to apply differentiated minimum wages by industry has been scrapped. Next year, a single wage rate will be applied regardless of industry, as in previous years.

According to the Minimum Wage Commission on the 17th, at the 4th plenary meeting held the previous day at the Government Complex Sejong, the application of differentiated minimum wages by industry was discussed, and it was decided to apply a single rate again next year.

On the afternoon of the 9th, at the 3rd plenary meeting held in the Minimum Wage Commission meeting room of the Government Complex Sejong in Sejong City, Ryu Ki-jung, Executive Director of the Korea Employers Federation (left), a user committee member, and Lee Dong-ho, Secretary General of the Korean Confederation of Trade Unions, a labor committee member, are seated.
[Photo by Yonhap News]

The business and labor sectors fiercely debated this issue during the meeting, but as no conclusion was reached, it was put to a vote. As a result, out of 27 members, 16 voted against and 11 voted in favor. Since the meeting extended past midnight, it was carried over to the 5th plenary meeting.

Earlier, President Yoon had promised during his candidacy to apply minimum wages differentiated by industry. The current law allows for differentiated minimum wages by industry, but in Korea, this was only applied in the first year of the minimum wage system in 1988, and from the following year, a uniform rate has been applied across all industries.

The business community argues that since productivity varies by industry, minimum wages should also be applied differently. Ryu Ki-jung, Executive Director of the Korea Employers Federation (KEF) and a user representative, stated in his opening remarks before the meeting, "There are significant gaps in companies' payment capacity and productivity across industries," and added, "Minimum wages should be differentiated for industries that have reached a critical situation."

On the other hand, Lee Dong-ho, Secretary General of the Federation of Korean Trade Unions and a labor representative, countered, "Although the provision for differentiated minimum wages by industry has been dormant, the labor sector has patiently and sincerely participated in deliberations without causing discord," and argued, "The industry differentiation that undermines the foundation of the minimum wage system must be irreversibly abolished."

No initial wage level proposals from either the labor or business sectors were presented at this meeting. The 6th plenary meeting is scheduled for the 21st. The chairperson requested both sides to submit their initial proposals by the next meeting.

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