Small and medium-sized enterprises and small business owners are calling on the government to freeze the minimum wage for next year and to segregate minimum wage applications by industry. This is due to the prolonged sluggishness in domestic demand and the threat to their survival amid uncertainties both domestic and international.
On the 23rd, the Korea Federation of Small and Medium Enterprises will hold a press conference titled 'Press conference urging the determination of minimum wage for the survival of small and medium enterprises and small business owners' at its headquarters in Yeouido.
In attendance at the press conference will be Lee Jae-gwang, Chairperson of the Labor Force Committee of the Korea Federation of Small and Medium Enterprises, and Lee Oh-seon, Chairperson of the Busan Clean Surface Treatment Cooperative and member of the Minimum Wage Commission, along with industry representatives of small and medium enterprises and small business owners.
At the press conference, the small and medium-sized enterprises stated, "In a situation where sluggish domestic demand and uncertainties persist, the loan delinquency rate and the number of bankruptcies are reaching all-time highs, and many small and medium enterprises and small business owners are in an untenable situation," and noted, "The minimum wage for next year should be frozen at the current level."
They further urged that even for industries with very weak payment capabilities, separate applications should be implemented, calling for differentiated minimum wages by industry. Previously, small and medium enterprises proposed differentiated minimum wages for the restaurant industry, but this was rejected at the sixth plenary meeting of the Minimum Wage Commission on the 19th. They pointed out that, "If the different payment capacities of different employers are not considered, the sustainability of the minimum wage system will inevitably be threatened."
At the press conference, small business owners from closely related industries such as restaurants, convenience stores, and retail expressed the difficulties they face on-site.
Kim Hak-soon, representative of Shin Dong Myo Samgyetang, noted, "If the business scale is large, there may be room for reducing expenses, but for small restaurants like ours, when labor costs rise, we cannot endure any longer," and added, "Many people around us are becoming credit delinquents because they can't manage their debt and the money going into bankruptcy, so please reconsider whether raising the minimum wage truly helps ordinary people."
Park Tae-jun, representative of the Seven Eleven Ramada Sinseoldong branch, said, "When the minimum wage was low, I actively agreed with the increase, but now the minimum wage has reached a level that is too high," and remarked, "Some say if you can’t lower the minimum wage, you should close your business. I was shocked by that statement, and it is very unfair to close a business because of the minimum wage."
Manufacturing small and medium enterprises also expressed difficulties regarding the increase in minimum wage.
Kwak In-hak, Chairperson of the Korea Metal Panel Industry Cooperative, stated, "If the minimum wage is increased, it becomes a standard that applies pressure on labor costs not just to small business owners but all small and medium enterprises," and voiced, "Without improving management conditions and labor productivity, if labor costs continue to rise, investments for securing corporate growth and future, such as technology development (R&D), will be out of reach."
Meanwhile, the Korea Federation of Micro Enterprise will hold a press conference on the 26th in front of the Ministry of Employment and Labor's office in Sejong to urge the freeze of the minimum wage.