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Photo = Yonhap news |
[Alpha Biz= Paul Lee] South Korea's Minimum Wage Commission announced on July 10 that the national minimum wage for 2025 has been set at KRW 10,320 per hour, marking a 2.9% increase from the current KRW 10,030.
The decision was made during the Commission’s 12th plenary session held at the Government Complex in Sejong. Unlike in most years, the final wage was determined through a rare agreement between labor and management, rather than a vote.
During negotiations, labor and business representatives exchanged multiple revised proposals. In the final round, labor proposed KRW 10,430 while management suggested KRW 10,230, narrowing the gap to just KRW 200. The final figure of KRW 10,320 was agreed upon through further dialogue.
Converted on a monthly basis (assuming 209 working hours), the new minimum wage amounts to KRW 2,156,880 per month.
Consensus on the minimum wage is uncommon in South Korea. Since the system was introduced in 1988, only seven out of 37 wage decisions have been reached by agreement, with the last consensus dating back to 2008—17 years ago. This year, public interest commissioners strongly urged both sides to reach a compromise, which ultimately led to the first agreement in nearly two decades.
However, the agreement has drawn criticism as being incomplete. Four worker representatives from the Korean Confederation of Trade Unions (KCTU) withdrew from the negotiations before the 9th proposal, protesting the suggested negotiation range proposed by public interest members. The final agreement was reached between five worker representatives from the Federation of Korean Trade Unions (FKTU), nine employer representatives, and nine public interest commissioners.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
