Labor Unions Demand 16.3% Minimum Wage Hike for 2027, Citing Survival Costs

South Korean labor unions are demanding a significant 16.3% hike in the minimum wage for 2027, proposing an hourly rate of 12,000 won. The joint demand, announced by the Korean Confederation of Trade Unions (KCTU), the Federation of Korean Trade Unions (FKTU), and the Minimum Wage Movement Headquarters, aims to address the rising cost of living in an era of high inflation and high oil prices. Union leaders argue that the current minimum wage is insufficient for basic survival and fails to keep pace with inflation, leading to a severe disparity between labor value and asset appreciation.

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The minimum wage, which is a social standard guaranteeing a minimum decent life for workers and a benchmark for unemployment and social security benefits, is not even enough for the living expenses of a single, non-married household this year and has not kept up with inflation at all.

Union representatives emphasized that a minimum wage below the cost of a single meal is unacceptable and called for a decision that guarantees a decent standard of living for all workers. They highlighted the psychological toll on low-wage workers who struggle to afford basic necessities, which in turn dampens consumption and harms small business owners. The push for a higher minimum wage is framed not only as a benefit for workers but also as a stimulus for the local economy. Furthermore, the unions pointed to the persistent gender pay gap in South Korea, arguing that a substantial increase in the minimum wage is a crucial step toward recognizing the undervalued labor of women, who are disproportionately concentrated in low-wage and non-regular jobs.

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The minimum wage demanded by the labor sector is 12,000 won per hour, or 2,508,000 won per month. This amount is the minimum cost of survival for low-wage workers in an era of high inflation and high oil prices.

Beyond the hourly rate increase, labor groups are also advocating for the expansion of minimum wage coverage to include special employment and platform workers, such as delivery riders, ride-share drivers, and tutors. They criticized the recent rejection of such an expansion as a dereliction of duty and a violation of international labor standards. The unions are urging the government to implement follow-up measures to address the urgent needs of these workers. The demands also include strengthening state responsibility for protecting small business owners and self-employed individuals. While this announcement represents the labor sector's initial proposal, formal negotiations with the Minimum Wage Committee are expected to intensify, with potential for delays beyond the legal deadline, as discussions on industry-specific wage differences are yet to be resolved.

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The rejection of the minimum wage coverage expansion... is an act of dereliction of duty that ignores the protection of labor rights and is contrary to international labor standards.