Minimum Wage Increase

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The Minimum Wage Commission has begun discussions to determine next year's minimum wage. Over the next 2 weeks, management and labor officials are expected to clash over the rate increase.

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The Minimum Wage Commission held its third plenary meeting and began discussions on raising next year's minimum wage. The nation's two major umbrella labor unions who had boycotted the meeting decided to attend this year. In this sense, it was this year's first truly all member meeting.

[Soundbite] Kim Seong-ho(Standing Member, Minimum Wage Commission) : "As we start late this year, I hope for intense and focused discussions to bring good results."

The key issue was by how much the minimum wage should be raised. In a news conference before the meeting, the labor contingent proposed raising the minimum wage from the current 6,470 won per hour to 10,000 won.

[Soundbite] Kim Jin-suk(Korean Confederation of Trade Unions) : "We will work hard to realize 10,000 won in minimum wage and also to fix the unreasonable minimum wage system."

Meanwhile, management representatives called for a minimal hike, citing various side effects including dents to corporate activity and reduced employment.

[Soundbite] Kim Dae-jun(Korea Federation of Micro Enterprise) : "A spike in minimum wage will make it difficult for small-scale employers to pay their workers. This can lead to business closures, thereby decreasing hires."

The legal deadline to deliberate the issue is June 29th. The Minimum Wage Commission will continue talks until this date but it's unclear whether the deadline can be met due to wide differences between the labor and management circles.