S. Korea increases minimum wage for 2020 by 2.9% to KRW 8,590
- 5 years ago
After marathon 13-hour talks that went through the night,... South Korea's Minimum Wage Commission has finally agreed on next year's minimum wage.
It's only a slight increase compared to recent years so it should be music to the ears of small businesses,... less so for low-income workers.
To tell us more,... we have our Lee Min-sun on the line.
Min-sun,... tell us more.
Hi Mark,
South Korea's Minimum Wage Commission has set next year's minimum wage at 8-thousand 5-hundred 90 Korean won... that's approximately 7-dollars 30-cents an hour.
It's a mere 2-point-9 percent increase from the current rate of 8,350 Korean won... just over seven U.S. dollars.
It's the smallest increase since 2010 and the first time the rate of increase has been in the single-digit percentage range since President Moon Jae-in took office.
It shows the pace of hikes is slowing amid the economic slowdown in South Korea.
It also means the Moon administration has failed on one of its major pledges namely to hike the minimum wage to 10-thousand won or about eight-and-a-half dollars an hour by 2020.
The increase for 2018 was a whopping 16-point-4 percent, the sharpest rise in 17 years.. and 10-point-9 percent this year.
The decision was made around dawn on Friday through a vote by commission,... after a marathon meeting.
The labor sector initially proposed 10,000 won and the business sector 8,000 won... and after the negotiations... the commission voted on the final proposals to adopt the business sector’s proposal.
After the commission's vote, labor representatives released a statement slamming the decision...calling it a disaster.
On the other hand, the business sector was happy and described it as an inevitable choice to minimize the side effects that could arise from another sudden hike.
They also said they hoped it will help revitalize economy and reduce the burden on mom-and-pop stores and small and mid-sized companies.
The decision will be finalized by the Ministry of Employment and Labor on August 5th.
Once the finalized minimum wage is notified, it will take effect from January 1st next year.
Before the official notification is made, labor or business sectors can lodge objections.
The labor minister can also ask Minimum Wage Commission to reconsider its decision,... if objection is considered reasonable.
That's all from me.
Back to you, Mark.
It's only a slight increase compared to recent years so it should be music to the ears of small businesses,... less so for low-income workers.
To tell us more,... we have our Lee Min-sun on the line.
Min-sun,... tell us more.
Hi Mark,
South Korea's Minimum Wage Commission has set next year's minimum wage at 8-thousand 5-hundred 90 Korean won... that's approximately 7-dollars 30-cents an hour.
It's a mere 2-point-9 percent increase from the current rate of 8,350 Korean won... just over seven U.S. dollars.
It's the smallest increase since 2010 and the first time the rate of increase has been in the single-digit percentage range since President Moon Jae-in took office.
It shows the pace of hikes is slowing amid the economic slowdown in South Korea.
It also means the Moon administration has failed on one of its major pledges namely to hike the minimum wage to 10-thousand won or about eight-and-a-half dollars an hour by 2020.
The increase for 2018 was a whopping 16-point-4 percent, the sharpest rise in 17 years.. and 10-point-9 percent this year.
The decision was made around dawn on Friday through a vote by commission,... after a marathon meeting.
The labor sector initially proposed 10,000 won and the business sector 8,000 won... and after the negotiations... the commission voted on the final proposals to adopt the business sector’s proposal.
After the commission's vote, labor representatives released a statement slamming the decision...calling it a disaster.
On the other hand, the business sector was happy and described it as an inevitable choice to minimize the side effects that could arise from another sudden hike.
They also said they hoped it will help revitalize economy and reduce the burden on mom-and-pop stores and small and mid-sized companies.
The decision will be finalized by the Ministry of Employment and Labor on August 5th.
Once the finalized minimum wage is notified, it will take effect from January 1st next year.
Before the official notification is made, labor or business sectors can lodge objections.
The labor minister can also ask Minimum Wage Commission to reconsider its decision,... if objection is considered reasonable.
That's all from me.
Back to you, Mark.