South Korea's minimum wage for next year has been set at 4,110 won (about $3.2) per hour, up 2.75 percent from this year.

This represents the lowest increase in more than 10 years.

The Minimum Wage Council said representatives from labor, management and government agreed to the increase after a marathon overnight meeting that lasted early Tuesday morning.

Representatives from management called for 1 5.8 percent cut in the minimum wage, while those representing workers demanded a 28.7 percent hike.

The councils aid about 2.56 million workers will benefit from the minimum wage rise.

Labor representatives claimed that the minimum wage should reach half of the average wage in consideration of the poor state of the country's social safety net.

But management called for a cut for the first time, arguing that small companies have been facing difficulties in catching up with the rising trend in the minimum wage.