SME Sector: 'Freeze Minimum Wage Next Year... Payment Capacity Reached Limit'

South Korean small and medium-sized businesses (SMEs) and micro-businesses are urgently appealing for the minimum wage to be frozen next year. They contend that the combined pressures of high inflation and interest rates have pushed their ability to pay to the brink, necessitating minimum wage decisions that consider the unique financial realities of different industries.

At a press conference held at the Korea Federation of SMEs (KBIZ), representatives from various sectors pleaded for a "minimal breathing room" through a minimum wage freeze, warning that the collapse of SMEs and micro-businesses would lead to the downfall of the entire working-class economy. The gathering included leaders from sectors such as automatic vending machine operations and makeup artistry.

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If SMEs and micro-businesses, the economic backbone, collapse, the entire working-class economy will collapse. Please create minimal breathing room through a minimum wage freeze.

These business leaders expressed a sense of disconnect, noting that while the broader economy shows signs of growth with strong semiconductor performance and record-high stock prices, these benefits are not reaching SMEs and micro-businesses. They are grappling with persistent sluggish domestic demand, rising costs due to inflation, and an increasing burden of debt.

The SMEs also pointed out that the current minimum wage, when including holiday pay, represents a significant portion of the median wage, placing it at a high level compared to international standards. They argue that continuous increases without considering their payment capacity are pushing them toward a precipice. The group also voiced deep frustration over the recent rejection of a proposal to apply the minimum wage differently across industries, a move they believe is crucial for their survival but is being hindered by labor opposition and the Minimum Wage Commission's passive stance.

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We feel deep frustration and helplessness. While various countries implement differentiated application methods, Korea cannot move forward due to labor opposition and the passive attitude of the Minimum Wage Commission.