Lee Myeong-ro, a user committee member of the Minimum Wage Commission and the head of the Human Resources Policy Department at the Korea Federation of Small and Medium Enterprises, is giving a welcoming speech at the first plenary session of the Minimum Wage Commission to determine the minimum wage level for next year, held at the Government Sejong Office on April 22. /Courtesy of Yonhap News.

The minimum wage increase next year should be minimized and applied differentially by industry.

Lee Myeong-ro, Deputy Minister of the Korea Federation of Small and Medium Enterprises, said this in a phone interview with ChosunBiz ahead of the 3rd plenary meeting of the Minimum Wage Commission on the 29th. This Deputy Minister is one of the employer representatives on the Minimum Wage Commission.

On that afternoon, the Minimum Wage Commission began its third discussion to determine the minimum wage for next year. The hourly minimum wage this year is 10,030 won, exceeding 10,000 won for the first time in history. The increase rate is 1.7%.

This Deputy Minister noted, "Given the difficult domestic situation and the anticipated decrease in exports due to U.S. tariff bombs, we must consider that the wage payment ability of small businesses and self-employed individuals could be significantly weakened," adding that "the minimum wage increase should be minimized."

This Deputy Minister emphasized especially the differential application of the minimum wage by industry. He said, "We should introduce differential application considering the differences in minimum wage acceptance across industries; otherwise, corporations will reduce employment, leading to a vicious cycle with declining productivity and rising unemployment rates." He also stated, "Research and surveys are needed for differential application of the minimum wage," adding that "additional research and surveys should be conducted for detailed discussions on the differential application of the minimum wage."

Expanding the scope of minimum wage application is also a key issue in this Minimum Wage Commission discussion. Currently, specialized workers such as delivery and courier drivers and platform workers are not subject to minimum wage laws and are paid based on performance. In response, worker representatives argue that the minimum wage should also apply to contracted workers.

Regarding this, this Deputy Minister stated, "To apply the minimum wage to contracted workers who are not under the control and supervision of the employer, we must first recognize them as workers under the Labor Standards Act."