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IN-DEPTH: S. Korea to raise minimum wage next year by 5% as workers and firms strain under high inflation Updated: 2022-07-05 17:04:57 KST

South Korea's minimum wage is going up next year by 5 percent.
That was the proposal voted on and passed last week at the Minimum Wage Commission.
Labor and management were unable to reach a deal, so commission members representating the public interest got to make their own proposal.
The minimum wage will be about 7 U.S. dollars and 40 cents an hour at the current exchange rate.
But the increase is less than inflation, which came in last month at 6 percent.
To find out what the increase means for workers and businesses, we're joined this evening by Professor Song Soo-young from Chung-Ang University.

. Tell us about the negotiations that led to the new minimum wage. Labor wanted wages to go up almost 13 percent while business wanted only about 1 percent.

2. For a standard work week that means a monthly income of 2.zero-2 million won, or about 15 or 16-hundred dollars. What will this mean for small businesses? How about workers? Inflation last month was the highest it's been in 24 years at 6 percent, so even this 5-percent increase doesn't keep up with the rise in prices.

3. Is Korea going to have a wage-price spiral? Big companies have been raising pay faster than small ones -- so much so that the government has told big companies to slow down.

4. How does Korea's minimum wage compare with other developed countries? The Korean minimum wage is now actually higher than the federal minimum wage in the United States.

5. The Moon administration had said it would get wages up to 10-thousand won an hour. That did not happen. Could it in 2024?
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