SME Sector "Disappointing Outcome as Minimum Wage Fails to Achieve Freeze Level"

The Position of Small and Medium Enterprises on the 2024 Minimum Wage Decision

The small and medium-sized enterprise (SME) sector expressed regret on the 19th over the Minimum Wage Commission's decision to raise the 2024 minimum wage by 2.5% (240 won) to 9,860 won, compared to this year.

The Korea Federation of SMEs issued a statement that day, saying, "The SME sector is experiencing reduced payment capacity due to low growth and high interest rates, and business activities are shrinking amid economic uncertainty," adding, "It is somewhat disappointing that the SME sector's earnest hope for a freeze level was not achieved."

The minimum wage for 2024 has been set at 9,860 won. In the early morning of the 19th, the voting results were posted on the monitor in the Minimum Wage Commission meeting room at the Government Complex Sejong in Sejong City. (Photo by Yonhap News)

The 2.5% increase is the second lowest rate in history, following the 1.5% increase in 2021. While the industry views this as a result of appeals regarding the difficult business conditions faced by SMEs and small business owners, it explained, "The user representatives' proposal of a '2.5% increase' was an unavoidable choice to minimize the burden on SMEs and small business owners who would be pushed to the brink if the already high minimum wage, which is among the highest globally, were to be sharply increased again."

Furthermore, the SME sector stated, "Although this is not the best outcome, we will not cease efforts to comply with the minimum wage and contribute to national economic development through job creation," and added, "We hope that in the future, the implementation of sector-specific differentiated application and institutional improvements reflecting companies' payment capacity in the decision criteria will be promptly realized."

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