Industry-Based Minimum Wage Rejected... Federation of Small Business "Strong Regret, Payment Capacity Must Be Reflected"

Expressing Regret Over Rejection of Industry-Based Differentiation
Urging Consideration of Payment Capacity in Wage Deliberations

After the proposal to apply the minimum wage differently by industry category was voted down, the small business sector expressed regret and demanded that the payment capacity of small business owners be reflected in the process of deliberating the minimum wage amount.

The Korea Federation of Micro Enterprises and small business organizations held a nationwide "Resolution Rally to Defend Survival Rights and Urge a Major Shift in Employment Policy" on the 9th in front of the National Assembly Station in Yeouido, Seoul. Korea Federation of Micro Enterprises

On June 19, the Korea Federation of Micro Enterprises issued a statement saying, "We express deep disappointment and frustration that the 'industry-specific application of the minimum wage for 2027,' which was the earnest hope of 7.9 million small business owners, was ultimately voted down at the Minimum Wage Commission meeting held the previous day."

The Korea Federation of Micro Enterprises stated, "Small business owners are facing a crisis of extreme contraction in consumption amid high inflation, high interest rates, and a high exchange rate. While sales have plummeted, all costs—including rent, raw material prices, and public utility fees—have soared to unbearable levels," adding, "Despite these circumstances, the minimum wage continues to rise every single year without exception."

The Federation pointed out the 'paradox of the minimum wage,' in which business conditions deteriorate while employment declines, and emphasized the need for a differentiated application of the minimum wage. Article 4, Paragraph 1 of the Minimum Wage Act stipulates that the minimum wage "may be set differently by the type of business."

The Federation further criticized, "The labor sector has proposed raising the minimum wage for 2027 to 12,000 won, a 16.3% increase from this year. The fact that union members of large corporations are making such unreasonable demands—using the minimum wage as leverage to fatten only themselves while ignoring the tears of small business owners—ironically underscores the necessity for differentiation in the minimum wage."

The Federation continued, "Globally, minimum wages are set in diverse ways according to region, industry, and skill level. Insisting on a single national framework is an act of ignoring the situation of small business owners who simply cannot afford to pay."

They added, "Although there is a legal basis, institutional diversity is blocked every year as the actual conditions and data of small business owners are ignored, pushed aside by opposition from the labor sector and political logic. Small business owners cannot help but be outraged by this reality."

The Federation made it clear that "all responsibility for the failure to implement this measure lies with the Minimum Wage Commission, which ignored the realities on the ground," and strongly urged that the payment capacity of small business owners must be absolutely reflected in the upcoming minimum wage amount deliberation process.

This content was produced with the assistance of AI translation services.