Two-thirds of small biz owners call for freeze of minimum wage: poll
This file photo, taken Dec. 31, 2024, shows a shopping complex with small restaurants in central Seoul. Yonhap
Nearly two-thirds of self-employed small business owners say their business conditions have worsened this year and are calling for the minimum wage to be frozen or lowered, a poll showed Thursday.
According to the survey conducted by the Federation of Korean Industries (FKI), 63.4 percent of 500 respondents said their business conditions have deteriorated compared with last year. Only 6.8 percent said they have improved, while 29.8 percent said their conditions remained about the same.
On the level of burden caused by the current minimum wage, 50 percent of the respondents said it was heavy, 30.6 percent said it was moderate, and 19.4 percent said it was not a burden.
By industry, businesses in lodging and food services felt the most burden, at 64.2 percent, followed by wholesale and retail at 51.9 percent, education services at 50 percent and manufacturing at 48.4 percent.
When asked about the minimum wage, 59.2 percent said it should be frozen or reduced. Support for freezing the minimum wage stood at 44.2 percent, while 15 percent called for a reduction. The current minimum wage is set at 10,030 won ($7.37) per hour.
Also, 30.4 percent of respondents said they earn less than the current statutory minimum wage, which amounts to roughly 2.1 million won per month based on the standard 40-hour workweek system.
An FKI official said a cautious approach is needed when determining next year's minimum wage and stressed the need to consider employers' ability to pay and overall labor market conditions.