Gov't sets 2027 minimum wage at 10,700 won per hour
The hourly minimum wage will rise 3.7 percent to 10,700 won next year after the Labor Ministry rejected objections from unions and small business groups.
A notice on the 2026 minimum wage is posted at an employment center in Seoul on July 15.YONHAP
Korea's minimum wage will rise 3.7 percent to 10,700 won ($7.51) an hour next year, the Ministry of Employment and Labor said Wednesday in a final notice that rejected objections from both labor and small business groups.
The new rate is 380 won more than this year's 10,320 won. Based on a 40-hour workweek and 209 working hours a month, it works out to a monthly wage of 2,236,300 won. It takes effect on Jan. 1 and applies to every workplace regardless of sector.
The increase is the first in the 3 percent range in four years, since the 5.0 percent rise that applied in 2023.
The Minimum Wage Commission, made up of employer, worker and public-interest members, set the figure at its 14th plenary session on July 14. The ministry gave notice of the proposal on July 16 and took objections until July 27.
The Korean Confederation of Trade Unions argued that the minimum wage should also cover workers paid by the job rather than by the hour, including specially employed workers and platform workers.
The Korea Federation of Micro Enterprise took the opposite position and asked for a reconsideration. It said the increase is too steep, threatens the livelihoods of small business owners and could hasten job cuts.
The ministry turned down both objections. It weighed the purpose and content of the Minimum Wage Act along with the commission's deliberation and resolution process, it said.
Song Chi-young, chairman of the Korea Federation of Micro Enterprise, speaks to reporters outside the Seoul Administrative Court in Seocho District, southern Seoul, on Aug. 5 about the group's administrative suit against the Ministry of Employment and Labor over the 2027 minimum wage notice.YONHAP
No objection has been accepted since the minimum wage system took effect in 1988.
The federation said it would file an administrative suit at the Seoul Administrative Court on Wednesday seeking to cancel the notice.
The ministry will step up publicity and guidance on the new rate and carry out workplace inspections to make sure it is observed.
BY JEONG JAE-HONG [cho.yongjun1@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
