Minimum Wage Gap Now 860 Won: "Labor Proposes 11,350 Won, Management 10,490 Won"

On July 9, labor and management, currently negotiating the minimum wage for 2027, each proposed their 7th revised offers: 11,350 won per hour from the labor side and 10,490 won per hour from the management side.

Kwon Soonwon, Chair of the Minimum Wage Commission, is attending the 13th plenary meeting held at the Minimum Wage Commission in the Government Complex Sejong on the 9th. Photo by Yonhap News Agency

The two sides made these proposals at the 13th plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong on the same day. Compared to this year's minimum wage of 10,320 won, the labor side suggested an increase of 10.0% (1,030 won), while the management side proposed a 1.6% (170 won) increase.

Compared to the 6th revised proposals presented on July 7, the labor side lowered its offer by 100 won, and the management side raised its offer by 30 won. As a result, the gap between the two sides narrowed from 990 won to 860 won. Labor and management plan to continue deliberations at the plenary meeting to further narrow this gap.

If the two sides fail to make significant progress in closing their positions, the public interest members may suggest a "deliberation facilitation range," setting an upper and lower limit to encourage an agreement or a vote within that range.

Meanwhile, during the meeting, the labor side argued that a substantial increase in the minimum wage was necessary, citing the low rate of increases over the past three years and the need for domestic demand recovery. Ryu Kisub, Secretary-General of the Federation of Korean Trade Unions (FKTU), stated, "During the process of minimal minimum wage increases over the past three years, we experienced a recession in domestic demand and a vicious cycle. If the public's purchasing power is not supported, ordinary people will never open their wallets."

The management side asserted that the minimum wage has already reached a high level, pushing on-site payment capacity to its limits, and therefore called for only a minimal increase. Ryu Kijeong, Executive Managing Director of the Korea Employers Federation (KEF), explained, "The minimum wage has already reached a high level, and the payment capacity at worksites required to bear this cost is at its limit. As the minimum wage level rises, the range of workers directly and indirectly affected expands, resulting in additional burdens."

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