Mid-sized Companies Sector "Need to Explore System Shift Allowing Labor and Management Autonomy on Minimum Wage"

Opinions of Mid-sized Companies on the 2024 Minimum Wage Proposal

The mid-sized business sector expressed regret on the 19th over the Minimum Wage Commission's decision to raise the minimum wage for 2024 by 2.5% (240 won) from this year to 9,860 won.

The Korea Federation of Mid-sized Enterprises (KFME) stated in a commentary that "Despite worsening crises such as declining exports and the visible twin deficits in current and fiscal accounts, the Minimum Wage Commission's decision to set the 2024 minimum wage at 9,860 won, a 2.5% increase compared to this year, is regrettable in that it may slow down the pace of economic recovery by eroding the vitality of companies, the main drivers of national wealth creation, regardless of whether it aligns with the 'employer proposal'."

[Image source=Yonhap News]

Furthermore, KFME pointed out, "Even amid ongoing economic sluggishness, many mid-sized companies are intensifying efforts to expand facility investments such as research and development (R&D) and to pioneer overseas markets based on more jobs and higher performance. To ensure these challenges are not stifled, policy support to alleviate the burden caused by the minimum wage increase must be strengthened."

They also voiced opinions on the need to change the minimum wage decision-making structure. KFME said, "As symbolized by this year's record-long 110-day deliberation, the distorted and repetitive minimum wage decision process caused by the annual conflict between two camps must be fundamentally reformed. We need to actively discuss solutions that fundamentally improve workers' lives while maximizing the vitality of companies as key economic actors, including the previously taboo topics of differentiated application by industry, region, and foreign workers."

KFME added, "To create a free and creative corporate ecosystem, it is necessary to minimize government and National Assembly intervention and actively seek a system that finds solutions to labor condition issues such as minimum wage and working hours based on autonomous negotiations between labor and management."

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