Minimum wage talks to begin next week

Members of the Labor Party hold a rally to demand a big minimum wage hike near Cheong Wa Dae in central Seoul, Thursday. / Yonhap

By Jung Min-ho

Talks to set the minimum wage for 2018 will begin next week.

According to the Minimum Wage Commission, Thursday, representatives of employers, workers and the government will have their first meeting June 15 to negotiate next year’s minimum wage, following the election of Moon Jae-in who promised to raise it to 10,000 won ($8.80) an hour within three years.

The current minimum wage is 6,470 won, which was raised by 7.3 percent from the previous year.

The representatives have to close the deal by June 29, and the Ministry of Employment and Labor will make an official announcement by Aug. 5.

The previous two meetings scheduled this year fell through as the representatives of workers refused to talk. They have demanded an immediate minimum wage increase to 10,000 won.

Meanwhile, management expressed concern over Moon’s minimum wage plan, saying it is “too drastic” and ignores the tough reality facing most small business owners.

Speaking to the State Affairs Planning Advisory Committee, the de facto transition team for President Moon, Korea Federation of Small and Medium Business Chairman Park Sung-taek asked the committee to reconsider the plan, claiming it will increase the burden on business owners and kill more jobs.