Ryu Ki-seop, secretary-general of the Korean Confederation of Trade Unions and a worker representative on the Minimum Wage Commission, listens to remarks by Yang Ok-seok, head of human resources policy at the Korea Federation of Small and Medium Business and an employer representative, during the 13th plenary session of the Minimum Wage Commission held Thursday at the Government Sejong Building. [Yonhap]
Ryu Ki-seop, secretary-general of the Korean Confederation of Trade Unions and a worker representative on the Minimum Wage Commission, listens to remarks by Yang Ok-seok, head of human resources policy at the Korea Federation of Small and Medium Business and an employer representative, during the 13th plenary session of the Minimum Wage Commission held Thursday at the Government Sejong Building. [Yonhap]

Labor and management narrowed their gap to 730 won Thursday, submitting their eighth revised proposals in negotiations to set next year's minimum wage.

The two sides still failed to reach an agreement, putting the spotlight on whether the public interest commissioners will present a recommended deliberation range — the final variable in the talks.

The Minimum Wage Commission held its 13th plenary session Thursday at the Government Sejong Building to continue deliberations on next year's minimum wage.

The deliberation process works by having labor and management each submit an initial proposal, then exchange successive revised offers to narrow the gap. If no agreement is reached, public interest commissioners present a deliberation range with upper and lower limits, within which both sides submit further revised proposals. If that still fails to produce a deal, the final minimum wage is decided by a vote.

In their eighth revised proposal, labor called for an hourly wage of 11,250 won — a 9.0 percent increase from the current rate and 750 won below their initial demand of 12,000 won ($9,200) — while management offered 10,520 won, up 200 won from their initial proposal and representing a 1.9 percent increase.

The gap between the two sides narrowed by a further 130 won, from 860 won after the seventh round of revisions to 730 won.

Labor has maintained that a minimum wage increase is necessary to stabilize the livelihoods of low-wage workers and revive domestic consumption. Management, meanwhile, has urged caution, arguing that further increases on top of an already high minimum wage could exceed what small business owners and small and medium-sized enterprises are able to pay.

The Minimum Wage Commission has already missed its statutory deliberation deadline but must submit a proposal to the Employment and Labor minister by mid-July. The minister must finalize and announce the minimum wage by Aug. 5, with the confirmed rate taking effect Jan. 1 next year.


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