10th plenary session of the Minimum Wage Commission

Labor proposes 11,970 won, management 10,340 won — each side moves only 30 and 20 won from initial bids

Public interest members urge both sides to close gap rather than restate positions

Ryu Ki-jung, executive director of the Korea Employers Federation, left, and Ryu Ki-seop, secretary-general of the Korean Federation of Trade Unions, listen to remarks at the 10th plenary session of the Minimum Wage Commission held at the Government Sejong Complex on Tuesday. The vote on next year's minimum wage again missed its legal deadline due to the persistent gap between labor and management. [Yonhap]
Ryu Ki-jung, executive director of the Korea Employers Federation, left, and Ryu Ki-seop, secretary-general of the Korean Federation of Trade Unions, listen to remarks at the 10th plenary session of the Minimum Wage Commission held at the Government Sejong Complex on Tuesday. The vote on next year's minimum wage again missed its legal deadline due to the persistent gap between labor and management. [Yonhap]

Substantive negotiations over next year's minimum wage got underway in earnest Tuesday, but the gap between labor and management barely budged even after both sides submitted their first revised proposals. Labor adjusted its opening bid down by 30 won and management raised its initial offer by 20 won, narrowing the difference from 1,680 won to 1,630 won.

The Minimum Wage Commission said the two sides submitted their first revised proposals during a closed session of the 10th plenary meeting Tuesday. Labor proposed an hourly rate of 11,970 won (about $8) — a 16.0 percent increase from the current rate — while management offered 10,340 won, a 0.2 percent rise. Labor had lowered its initial demand of 12,000 won by 30 won, while management raised its original freeze proposal of 10,320 won by 20 won.

The meeting was held a day after the legal deliberation deadline expired. Commission Chairman Kwon Soon-won said Tuesday was "in effect the final session within the deliberation period, given the meeting schedule," and urged both sides to "do their utmost to narrow the gap between the initial proposals they have submitted."

Tensions ran high even before the session began.

Labor representatives displayed placards reading "Raise it, raise it — minimum wage to 12,000 won" and "Minimum wage 12,000 won before Kospi 10,000," calling for a substantial increase.

Management countered with signs reading "Consider payment capacity in an era of 1 million business closures" and "Minimum wage has risen 79.7 percent over 10 years," pressing the case for a freeze.

Management said the payment capacity of small businesses must be the top priority.

Ryu Ki-jung, executive director of the Korea Employers Federation, said that when weekly holiday pay is factored in, the effective minimum wage already exceeds 12,000 won this year, and that actual labor costs — including social insurance contributions and severance — amount to around 2.6 million won ($1,694) per month. "Voices from the field say that not only hiring new workers but even retaining existing staff is a struggle," he said. "Next year's minimum wage must be set with comprehensive consideration of the payment capacity on the ground and the broader economic impact."

Yang Ok-seok, head of human resources policy at the Korea Federation of Small and Medium Business, said the labor side's demand for a 16.3 percent increase was comparable to the rate applied in 2018. "Since the base minimum wage has risen significantly since then, the burden on businesses will inevitably be even greater," he said. He urged a freeze or a decision close to one, adding that the minimum wage must serve not only to stabilize workers' livelihoods but also to support the sound development of the national economy.

Labor pushed back, arguing that a raise was unavoidable to revive domestic consumption and stabilize the livelihoods of low-wage workers.

Ryu Ki-seop, secretary-general of the Korean Federation of Trade Unions, said the minimum wage "is not simply a cost — it is a system that embodies the value of labor, income distribution and welfare." He said boosting the real incomes of low-wage workers to expand their spending power was essential to reviving the sluggish domestic economy. He also proposed that any minimum wage increase be accompanied by expanded support for social insurance premiums and labor costs for small merchants and the self-employed.

Lee Mi-seon, vice chairwoman of the Korean Confederation of Trade Unions, said a freeze that falls short of the inflation rate "is in effect a cut," adding that a minimum wage increase is "the minimum safeguard for protecting workers' right to survival."

Public interest members called on both sides to compromise.

Seong Jae-min, speaking on behalf of the public interest members, said two rounds of substantive discussions had produced sufficient opinions and supporting arguments. "The time has come to move beyond simply reaffirming each side's position and to start finding common ground and genuinely narrowing the differences," he said.


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