The Minimum Wage Commission convened on the 18th at the Government Complex Sejong and voted on the “application of varying minimum wages per industry” for the following year, but it was turned down.
On the 18th, the Minimum Wage Commission stated, “It has been decided that the minimum wage for 2027 will be consistently applied throughout all sectors.” The proposal received 14 votes against, 11 in support, and one invalid vote, falling short of a majority among those present.
Labor and management continued to be stuck on the issue of varying minimum wage applications across different industries. The management side contended that the hospitality and food service sectors should have a reduced minimum wage compared to other areas, while the labor side rejected this, labeling it as “establishing workplace discrimination.” The labor group asserted that implementing different minimum wages based on industry could reinforce discrimination against women and younger employees, and that reducing wages might not actually lead to more job opportunities.
The topic of varying minimum wages across different industries has consistently been a source of disagreement between workers and employers each year. According to the existing Minimum Wage Act, it is allowed to apply different rates by industry and this was done once in 1988, the initial year of the system. Nevertheless, because of resistance from the labor side, a single minimum wage structure has been in place since 1989.
Through this vote, the debate regarding sector-specific implementation has been postponed to next year’s Minimum Wage Commission.
With the discussion on varying minimum wages across industries coming to a close, the Minimum Wage Commission is set to start deliberations on the 2027 minimum wage level next week. The labor sector has suggested an hourly rate of 12,000 Korean won, representing a 16.3% rise from this year’s minimum wage. The business sector has not yet submitted its proposal but is anticipated to suggest a hold or minimal increase, citing challenges encountered by small business owners and independent operators.
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