Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Korea's minimum wage fourth highest among OECD countries: KEF
By Kwak Yeon-soo
By Kwak Yeon-soo
Korea has one of the highest proportional minimum wages among OECD member nations, the Korea Employers Federation (KEF) said in a report, Sunday.
The lobby group representing management has published a report containing data showing Korea's minimum wage was the fourth highest among 28 OECD member nations, when compared to average wages. Eight member nations that do not have a minimum wage system were excluded.
According to the report, Korea's minimum wage increase rate in the past two years was 29.1 percent, about double the OECD's average increase rate of 14.2 percent in the same period.
The government raised the minimum wage to 7,530 won ($6) per hour in 2018, up 16.4 percent from the previous year, and by another 10.9 percent to 8,350 won per hour in 2019.
The minimum wages were estimated by using an international comparison methodology, along with statistics from the OECD and the Korea Minimum Wage Commission.
As a result, minimum wage relative to median wage stood at 64.5 percent while minimum wage to average wage marked 50.3 percent, according to the KEF.
This is higher than the OECD average of 54.7 percent of the median wage and 43.4 percent of the average wage.
Korea ranked sixth in 2019's estimated minimum wage relative to the median wage, following Turkey (81.3 percent), Chile (69.8 percent), Lithuania (68 percent), Portugal (66 percent) and New Zealand (64.6 percent).
In addition, Korea ranked fourth in 2019's estimated minimum wage relative to average wage, following New Zealand (55.5 percent), Lithuania (55.3 percent) and Slovenia (50.7 percent).
“Considering the speed and relative level of minimum wages in major advanced countries, the minimum wage should be tightly controlled at a level of not exceeding 60 percent of the median wage,” a KEF official said, calling to ease minimum wage hikes.