Businesses plan to hire less after minimum wage hike

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Businesses plan to hire less after minimum wage hike

Published: 22 Dec. 2017, 19:45

Nearly 8 in 10 Korean businesses said they plan to reduce the number of part-timers next year after the minimum wage goes up in a survey released by job site Albamon on Friday.

Among 304 retail operators, 241 said they expect to hire fewer part-time workers. Only 15.5 percent said the government policy would not affect hiring at all.

By industry, restaurants expect to be the most heavily affected as most pay part-timers the minimum wage.

About 95 percent of bakeries, ice cream shops and dessert cafes said they would employ fewer part-time workers. Nearly 93 percent of fast-food franchise operators said the same, while 89.5 percent of convenience store owners and 86 percent of cafe owners replied the same.

Earlier this year, President Moon Jae-in announced that the government would raise the minimum wage by 16.4 percent, the highest increase since 2001, to 7,530 won ($7) per hour. The rate takes effect on Jan. 1. By Song Kyoung-son