Minimum wage to rise 7% to W 5,580

By Yoon Ja-young

From Jan. 1, the minimum wage will rise over 7 percent to 5,580 won or $5.08 per hour from 5,210 won. Cigarette prices will also be raised an average 2,000 won per pack, while smoking will be prohibited in all restaurants.

The increase to the minimum wage means those who work eight hours a day should be paid at least 44,640 won a day. The monthly wage should be at least 1.17 million won for those who work 209 hours a month.

The cigarette price, which averages 2,500 won per pack, will be raised to 4,500 won.

The government hopes this will help curb smoking as well as increasing tax income.

Smoking is currently banned at restaurants that are 100-square-meters in size or bigger, but it will be prohibited in all restaurants from next year.

Currently, stock prices are allowed to rise or fall daily by up to 15 percent, but this daily limit will be doubled to 30 percent.

The government will also lower commission fees for real estate agents.

The maximum commission that realtors can charge is currently set at 0.9 percent on assets valued between 600 million won and 900 million won, but this will be lowered to 0.5 percent.

For “jeonse” transactions, Korea’s unique rent system where a lump-sum deposit is paid instead of monthly rent, real estate agents will only be able to charge up to 0.4 percent as commission, if the jeonse price is between 300 million won and 600 million won.

Currently they can charge up to 0.8 percent.

Those buying hybrid cars will get a 1 million won subsidy.

The car should be small or medium sized and produce carbon emissions of less than 97 grams per kilometers.

They can apply for the subsidy at hybrid.bonus.or.kr after registering the car.

The monthly basic pension for senior citizens will be raised to 203,600 won from 200,000 won, and the number of recipients will also increase to 4.6 million from 4.5 million.

The childcare subsidy for infants will be raised to 406,000 won from 394,000 won as well.

Tax deduction for working class households with children or couples getting infertility treatment will also be expanded from next year, as a means of tackling the low birth rate.

Children aged between 12 and 36 months old will get vaccinated against hepatitis A for free, and senior citizens aged 65 or older will get a free influenza vaccination at general clinics and hospitals, as well as community health centers.

Currently, those who travel abroad are allowed to buy up to $600 worth of duty free.

If anyone has purchased more than this limit but has not reported to the customs office, he or she is currently subject to 30 percent additional tax.

This additional tax rate will be raised to 40 percent from next year. If they report voluntarily, however, they get a 30 percent tax cut.

The total tax cut, however, cannot exceed more than 150,000 won.

The rice market will also be fully opened, applying a 513 percent tariff.