The Minimum Wage Commission voted 14-9 to approve the 1.7 percent increase after labor representatives walked out in protest. Management had proposed 10,030 won, while labor sought 10,120 won.
The modest hike, the second-lowest since 2021, reflects ongoing economic concerns. Based on a 40-hour workweek, the monthly minimum wage will be 2,096,270 won.
The new rate takes effect on January 1, 2025. The Ministry of Employment and Labor is expected to officially announce it by August 5, following a period for potential appeals from both sides.
Small and medium-sized enterprises, which called for a freeze, expressed regret over the decision, stating that they will face even more difficult situations next year due to the minimum wage increase.
They argue that the psychological impact of crossing the 10,000 won threshold could have significant consequences for small businesses and consumer behavior.
