South Korean labor unions demand 16.3% minimum wage hike to 12,000 won per hour

South Korea's labor unions have officially proposed a significant increase in the minimum wage for the upcoming year, demanding an hourly rate of 12,000 won. This represents a 16.3% hike, or an increase of 1,680 won, from the current minimum wage. The proposal was put forth by the Minimum Wage Movement Headquarters, comprising major labor federations like the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU), along with the civic group People's Solidarity for Participatory Self-Government.

Labor representatives argue that the real wages of low-income workers have stagnated or declined over the past three years. They point to an average annual increase of only 2.37% in the minimum wage between 2023 and 2025, which falls short of the average inflation rate of 2.66% during the same period. To address this, the unions calculated a necessary living cost of 2.87 million won for 2026-2027, factoring in projected inflation. Their proposed minimum wage of 12,000 won per hour, equating to approximately 2.5 million won per month based on a 209-hour workweek, represents 87.4% of this calculated living cost.

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The minimum wage is no longer an issue for just a few workers; it is at the core of broad public livelihood issues.

"The minimum wage is no longer an issue for just a few workers; it is at the core of broad public livelihood issues," stated Ryu Ki-seop, Secretary-General of the FKTU. He criticized the current economic climate where stock and asset prices surge, and investment returns garner attention, leading to the devaluation of labor. Ryu asserted that a substantial minimum wage increase is a practical measure to alleviate widening inequality. Lee Mi-seon, Vice President of the KCTU, added that low-wage workers experience "extreme loss" from not being able to afford a comfortable meal during their workday, and that raising the minimum wage is also a way to stimulate the local economy.

The Minimum Wage Committee is expected to hold its sixth plenary session on June 16th to deliberate on the proposal. Historically, the committee has only submitted its decision within the legal deadline nine times since the system's inception in 1988. Considering procedural requirements, the proposal must be submitted to the Ministry of Employment and Labor by mid-July, with the final minimum wage for 2025 to be officially announced by August 5th. Past minimum wage increases have seen a gradual rise, with the hourly rate increasing from 9,160 won in 2022 to 10,320 won in 2026, reflecting modest annual adjustments.

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Raising the minimum wage is not just a matter for workers; it is a way to revitalize the local economy.