2021 MINIMUM WAGE RECORDS LOWEST INCREASE

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The minimum wage for next year has been raised by 1.5 percent, the lowest increase on record. The decision was reached through a vote on a proposal submitted by public interest commissioners, as labor and management had failed to narrow their differences.

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The minimum wage commission has set the nation's 2021 minimum wage at 8,720 won. Up 1.5 percent from this year, it adds up to a monthly wage of 1 million 8-hundred 22 thousand and 480 won. Its the lowest increase since the minimum wage was first introduced in the nation. It's also lower than the 2.7 percent raised during the 1998 financial crisis.

[Soundbite] PARK JUN-SHIK(MUNUMUM WAGE COMMISSION) : "It's an important step towards protecting jobs, the labor market and economic entities while ensuring sustainable growth for the economy."

After 11 hours of negotiations, labor and management failed to reach a consensus. They ended up voting on a proposal submitted by public interest commissioners -- nine votes in favor and seven against. None of the nine worker commissioners cast their votes. Only nine public interest and seven employer commissioners participated. Four labor commissioners recommended by the Korean Confederation of Trade Unions did not participate in the talks from day one, as they opposed the employer commissioners' demand to cut wages, while five worker commissioners recommended by the Federation of Korean Trade Unions left the venue shortly before the vote to express opposition to the public interest commissioners' proposal. Two employer commissioners who demanded a wage cut or freeze also left before the vote. The 2021 minimum wage will be finalized by the labor minister by August 5, and it will take effect on January 1. If labor or management raise an objection for a legitimate reason, the minister could request the minimum wage commission deliberate the matter again.