Labor groups demand minimum wage of $7.90 in 16.3% increase

South Korea’s largest labor organizations, the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, announced on Monday their proposal for next year’s minimum wage, calling for an increase to 12,000 won ($7.90) per hour. This would mark a 16.3% rise from the current rate of 10,320 won, which was already a 2.9% increase from 2023. The unions argued that recent wage hikes have failed to keep pace with inflation, citing an average annual increase below the inflation rate over the past three years. Their demand comes as the Minimum Wage Commission, which includes representatives from labor, business, and public interest groups, continues negotiations to determine the final rate. The commission has held regular meetings since April, with its sixth plenary session scheduled for Tuesday. While labor groups have set their position, business groups have yet to disclose their proposal, though market analysts anticipate they will advocate for a smaller increase or a freeze. The current minimum wage of 10,320 won reflects a gradual upward trend, but the unions’ push for a significant hike underscores growing pressure on policymakers to address wage stagnation amid rising living costs. The outcome of the commission’s deliberations will shape wage expectations for millions of workers in the country.