Third Revised Minimum Wage Proposal: "11,800 Won vs. 10,390 Won"... Labor-Management Gap Remains at 1,410 Won

11th Plenary Session of the Minimum Wage Commission

Labor and management negotiations over next year's minimum wage have reached a third revised proposal, but the two sides remain 1,410 won apart, with no agreement in sight.

On July 2, the Minimum Wage Commission held its 11th plenary meeting at the Government Complex Sejong to continue deliberations on the 2027 minimum wage. On that day, labor representatives put forward a third revised proposal of 11,800 won per hour (a 14.4% increase), which is 200 won lower than their initial demand. Employers proposed 10,390 won per hour (a 0.7% increase), up 70 won from their previous offer. The gap between labor and management proposals narrowed from 1,540 won in the second round to 1,410 won, a reduction of 130 won.

The labor side emphasized that the minimum wage serves as the minimum social safety net to guarantee the livelihood of low-wage workers. Ryu Kiseop, Secretary General of the Federation of Korean Trade Unions, stated, "Relying excessively on a specific indicator such as 60% of the median wage is a fundamental problem. The minimum wage is not the minimum cost but a wage that gives hope for sustaining life, so a forward-thinking and bold increase is needed."

Kwon Soonwon, Chair of the Minimum Wage Commission, is attending the 11th plenary meeting held at the Minimum Wage Commission in the Government Complex Sejong on the 2nd. Photo by Yonhap News

Imi Seon, Vice President of the Korean Confederation of Trade Unions, argued, "Discussions on the minimum wage should start from the inflation rate. For the public to accept the decision, talks should begin at a level exceeding the 2.7% inflation rate announced by the Bank of Korea."

The management side reaffirmed that they must remain cautious about further increases, citing the economic downturn and the burden of labor costs. Ryu Kijeong, Executive Managing Director of the Korea Employers Federation, said, "While the semiconductor boom gives a misleading impression, the reality for small and medium-sized enterprises and small business owners is extremely serious. If the labor side's revised proposal is implemented, the actual labor cost burden will increase significantly, reaching a level that is difficult for workplaces to bear."

Yang Okseok, Director of the Human Resources Policy Division at the Korea Federation of SMEs, appealed, "The situation on the ground is so dire that there are even calls for a reduction in the minimum wage. Some workers are asking not to raise the minimum wage any further, and there are also voices afraid of losing their jobs. Please consider these concerns as well."

The Minimum Wage Commission plans to continue deliberations by accepting additional revised proposals from both labor and management. If an agreement is ultimately not reached, public interest commissioners will either propose a mediation range for deliberation or determine next year's minimum wage through a vote.

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