Ryu Gi-jeong, Executive Director of Korea Enterprises Federation (left), who is a member of the Minimum Wage Commission representing users, and Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, who is a member representing workers, attend the 10th plenary meeting of the Minimum Wage Commission at the Government Sejong Office on the 8th. /Courtesy of Yonhap News

The 10th meeting of the Minimum Wage Commission, which discusses the minimum wage level for next year, was held on the 8th at the Government Sejong Post.

At the meeting, labor and management will negotiate the minimum wage increase range narrowed to 870 won. In the 9th meeting, labor and management presented the 6th revised proposal. At that time, labor proposed 11,020 won (9.9% increase), while management proposed 10,150 won (1.2% increase).

Labor and management continue to narrow the gap through a total of six minimum wage revised proposals. When both sides first presented their minimum wage demands, the gap was 1,470 won. Since then, the gap has been continuously narrowed from 1,440 won in the first revised proposal to 1,390 won (second revised proposal), 1,270 won (third revised proposal), 1,150 won (fourth revised proposal), 1,010 won (fifth revised proposal), and 870 won (sixth revised proposal).

Ahead of the meeting, worker representative Ryu Gi-seop, Secretary-General of the Korean Confederation of Trade Unions, stated, "The 11,020 won revised proposal is the minimum level considering survival and livelihood stability," and added that "an increase in the minimum wage is like a lifeline for low-wage workers." Lee Mi-sun, Vice-Chairperson of the Korean Confederation of Trade Unions, said, "Public interest members should not be beholden to the government and must make decisions that give hope to workers."

On the other hand, user representative Ryu Gi-jung, Executive Director of the Korea Employers Federation, noted, "If the minimum wage is raised as demanded by labor, the annual labor cost per worker will increase by 3 million won," explaining that "hiring several workers will result in an increase of several thousand won in annual labor costs." Lee Myung-ro, Deputy Minister of the Korea Federation of Small and Medium Enterprises, stated, "Sales for small business owners in the first quarter fell by 11.2% compared to the previous quarter, and the number of business sites reporting closures has exceeded 1 million for the first time since statistics began to be compiled."

Gwon Soon-won, Secretary of the Public Interest Committee and a professor at Sookmyung Women’s University, remarked, "Public interest committee members should not just be simple intermediaries but must lead social consensus," and pledged, "I will do my utmost to ensure that the minimum wage for 2026 is determined through labor-management consensus for the first time in 17 years."

Meanwhile, if labor and management reach a final agreement on the minimum wage level that day, the Minister of Employment and Labor must announce the results of the Minimum Wage Commission's resolution within 10 days from the date of receipt, according to the Minimum Wage Act. The legal announcement deadline is August 5. The declared minimum wage will take effect from January 1, 2026.

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