Sogongyeon Raises 'Objection' to 5% Minimum Wage Increase... "Small Business Owners' Deadly Burden"

Request for Reconsideration of Next Year's Minimum Wage at 9,620 Won
"Does Not Reflect Small Business Payment Capacity and Economic Reality"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of Micro Enterprise Associations submitted an objection letter regarding the 2023 minimum wage decision to the Ministry of Employment and Labor on the 11th.

Earlier, the Minimum Wage Commission decided on the minimum wage for next year to be 9,620 won, a 5.0% increase from this year, on the 29th of last month. The indicators cited as the basis for this decision were this year's economic growth forecast (2.7%), consumer price inflation forecast (4.5%), and employment increase forecast (2.2%).

The Federation pointed out in the objection letter that "it is difficult to confirm which of the four decision criteria set by the Minimum Wage Act this decision is based on."

They also criticized that "there is no social indicator reflecting the 'payment ability' of micro enterprises, the weakest payers."

The Federation raised their voice, stating that the minimum wage increase proposal does not reflect the reality of micro enterprise sectors, calling it "a decision that pushes micro enterprises into a limit situation of 'death triple hardship' by adding high wages to the 'triple hardships' of high interest rates, high exchange rates, and high prices."

They continued, "Micro enterprises, the weakest payers, are facing a reality and economic crisis situation where they can no longer endure and are expressing difficulties," and requested "a reconsideration of the minimum wage decision by comprehensively taking into account the issues mentioned in the objection letter."

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