South Korea Sets 2027 Minimum Wage at $10,700 Won Per Hour, Rejects Union and Business Appeals

South Korea's Ministry of Employment and Labor announced on August 5th that the minimum wage for 2027 will be set at 10,700 won per hour. This represents a 3.7% increase, or 380 won, from the current year's wage. The ministry confirmed it would not accept appeals lodged by labor unions and small business associations, finalizing the decision.

This hourly rate translates to a monthly salary of 2,236,300 won, based on a standard 40-hour work week (209 hours per month). The minimum wage will be applied uniformly across all business sectors, with no differentiation based on industry. However, the ministry noted that a separate minimum wage structure does not apply to workers paid by the piece rate or contract.

During the appeal period, which ran from July 16th to 27th, both the Korean Confederation of Trade Unions (KCTU) and the Korea Federation of Small Business Cooperatives submitted objections. The Ministry of Employment and Labor stated that these appeals were considered in light of the legal framework for minimum wages and the deliberation process of the Minimum Wage Committee, but were ultimately not accepted.

The ministry has pledged to conduct promotional activities and provide guidance to ensure compliance with the new minimum wage across workplaces. This includes ongoing supervision and inspection of businesses to uphold the labor law. The decision comes after extensive deliberations and reflects the government's stance on balancing wage increases with economic considerations, despite objections from key stakeholder groups.