Business Community Expresses "Deep Regret" Over Failure to Apply Differential Minimum Wage by Industry

KCCI "Some Industries Currently Unable to Afford Minimum Wage"
SME Central Association "SMEs Already Reached Payment Capacity Limit"

Minimum Wage Commission. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kiho Sung] Major economic organizations expressed "deep regret" regarding the Minimum Wage Commission's decision not to apply differentiated minimum wages by business type for the next year.

On the 18th, according to the business community, the Korea Employers Federation (KEF) issued a statement the day after the Minimum Wage Commission's decision, saying, "The minimum wage is rising too quickly without considering the market's capacity to absorb it and is being applied uniformly, making it impossible for some industries to bear the current minimum wage," and criticized, "Despite this situation, the Minimum Wage Commission ignored the desperate reality and wishes of small and micro enterprises and small business owners by deciding on a single minimum wage system again."

However, KEF positively evaluated the proposal by public interest commissioners to request the government to conduct a study on 'differentiated application by business type and basic data on living expenses,' which will be submitted as an agenda item at the next meeting of the Minimum Wage Commission.

KEF added, "This is at least a minimal effort to implement differentiated application by industry in the future," and urged, "The business community calls on the government to urgently prepare detailed implementation plans for differentiated minimum wage application in line with this intent."

The Korea Federation of Small and Medium Business also stated, "Small and micro enterprises and small business owners have already reached their payment capacity limits due to the surge in raw material prices following COVID-19," and pointed out, "It is irresponsible for the Minimum Wage Commission to ignore their desperate reality."

They emphasized, "Since the differentiated application by industry was rejected, next year's minimum wage must be determined based on industries with high rates of minimum wage violations that cannot even afford the current level."

The Korea Federation of Micro Enterprise also released a statement saying, "The decision structure of the minimum wage, trapped in an outdated framework, has delayed the differentiated application by industry once again," expressing "a sorrowful and dismal feeling."

Furthermore, the Federation said, "In recent years, Korea's minimum wage has risen to a level that threatens the survival of small business owners," and added, "Small business owners barely holding on in a large corporation-centered economic structure do not have the capacity to bear a uniform minimum wage application."

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