Sohee Kim Proposes Minimum Wage Act Amendment for Differentiated Application to Small Business Owners

Differentiation by Business Size and Region Outlined

"Small Business Survival Is Key to Revitalizing the Broader Economy"

A bill has been introduced to allow differentiated application of the minimum wage for small business owners, taking into account factors such as the employer's ability to pay when increasing the minimum wage.

On July 15, Sohee Kim, member of the People Power Party, sponsored a partial amendment to the Minimum Wage Act reflecting these provisions at the National Assembly's media center. Lawmakers Jongbae Lee, Kim Gi-hyeon, Heon Seung Lee, Susin Choi, Sanghoon Kim, Sungbeom Shin, Dae-sik Kim, Yongwon Yoo, Seon-kyo Kim, and Youngse Kwon joined as co-sponsors of the amendment.

Sohee Kim, member of the People Power Party

This amendment stipulates differentiated application of the minimum wage for small business owners. It supplements the determination criteria by comprehensively considering the employer’s actual "ability to pay" and "impact on employment stability." In addition to the current legal basis for differentiated application by business type, the amendment also adds a basis to allow the minimum wage to be set differently by workplace size and by region. Moreover, it stipulates that the relevant review must be conducted before the review of the minimum wage amount.

Kim stated, "Yesterday (the 14th), the Minimum Wage Commission set next year's minimum wage at 10,700 won per hour. This represents a 3.7% increase from this year's minimum wage." She added, "Small business owners have pleaded for differentiated application regarding the 2027 minimum wage, saying, 'We cannot survive any longer. Please stop increasing the minimum wage.' Yet, their desperate voices were ultimately disregarded."

Kim further commented, "Raising the minimum wage further when we have already reached the limit of the employers' ability to pay is essentially forcing small business owners out of business. The harm does not end with the business owners. When a small business closes, the employees working there will also lose their jobs, creating a vicious cycle that ultimately threatens the livelihoods of the most vulnerable people in our society."

Kim appealed, "I urge President Jaemyung Lee and Minister of Employment and Labor Yeonghun Kim not to ignore the desperate voices of small business owners, who withstand the most challenging conditions, while only listening to the demands of the two major union federations." She continued, "Small business owners must survive for the working-class economy to survive, and for the jobs of the most vulnerable to be protected. I call on the government to take a forward-looking and proactive approach."

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