South Korea’s labor and business groups moved closer to an agreement on next year’s minimum wage during negotiations on July 9, narrowing the gap between their latest proposals to about 53 U.S. cents an hour as a decision deadline approaches.
The Minimum Wage Commission continued deliberations in Sejong, where labor representatives lowered their proposed hourly minimum wage to about $8.15, while employer groups raised their offer to about $7.65. After three rounds of revised proposals during the meeting, the difference between the two sides narrowed to approximately 53 cents per hour.
Labor unions initially sought an hourly minimum wage of about $8.72, representing a 16.3% increase from this year’s level, while employers proposed maintaining the current rate of about $7.50.
Under the latest proposals, labor representatives are seeking an 8.7% increase, while employers are calling for a 2% increase over the current minimum wage.
The labor minister must officially announce next year’s minimum wage by Aug. 5, although the commission is widely expected to reach a decision by mid-July to allow time for administrative procedures.
The commission’s next plenary meeting is scheduled for July 14, when negotiators are expected to make a final attempt to reach an agreement.
If labor and business representatives remain divided, the commission’s public-interest members may propose a recommended bargaining range to facilitate a compromise or move the process to a vote.
Last year, the commission reached its first consensus agreement between labor and management on the annual minimum wage since 2008, ending a 16-year period in which the final wage was set without a negotiated accord.
