Next Year's Minimum Wage Set at 9,620 Won... Sogongyeon Launches "System Improvement Campaign"

Ministry of Employment Confirms and Announces Next Year's Minimum Wage
Objection Filed but Reconsideration Denied
"Routine and Formal Response... Strong Regret"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] After the minimum wage for next year was confirmed at 9,620 won, the Korea Federation of Small and Medium Business (KSMB) announced that it would launch a campaign to improve the minimum wage system.

On the 5th, KSMB stated, "We will launch a full revision of the Minimum Wage Act and a campaign to improve the minimum wage system in response to the decision on the minimum wage that does not reflect the reality of small business owners and the refusal to reconsider it."

KSMB filed an objection to the minimum wage proposal for next year announced by the Minimum Wage Commission in June but received a notice of refusal for reconsideration from the Ministry of Employment and Labor on the 4th.

The Ministry of Employment and Labor explained that △ the 2023 minimum wage decision comprehensively considered the wage gap and living standards of low-wage workers, as well as the payment ability and business conditions of employers, and △ there were no procedural defects in the resolution process, making it difficult to accept the objection.

The Ministry finalized and announced the minimum wage for next year as 9,620 won per hour, an increase of 460 won (5.0%) from this year, in accordance with the Minimum Wage Commission's decision.

In response, KSMB said, "This decision ignores the survival reality of small business owners who are in an extreme situation," and expressed "strong regret over the routine and theoretical response that did not even review the objection letter."

Minimum Wage Commission / Photo by Jinhyung Kang aymsdream@

Earlier, the Minimum Wage Commission raised next year's minimum wage by 5.0% compared to this year, using the final calculation formula of '2022 economic growth forecast (2.7%) + 2022 consumer price inflation forecast (4.5%) - 2022 employment increase forecast (2.2%).'

KSMB pointed out, "There is no indicator in the final calculation formula that comprehensively considers the employer's payment ability, which was the basis for the 5.0% increase," and added, "It is still difficult to confirm which of the decision criteria in the Minimum Wage Act the three indicators used in the final calculation formula are based on."

They criticized, "The minimum wage increase proposal did not reflect the voices of small business owners and the realities of industries that have not escaped from the losses caused by COVID-19 quarantine measures and massive debts."

KSMB emphasized, "This decision adds high wages to the 'triple hardship' of high exchange rates and high prices, pushing small business owners into a 'deadly hardship' limit situation," and stated, "We will launch a campaign to improve the minimum wage system."

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