25 percent minimum wage increase demanded by Korean labor

Members of the Korean Confederation of Trade Unions chant, demanding a higher minimum wage, at Sejong Government Complex on Wednesday. [YONHAP]

Labor is demanding a 25 percent increase in the minimum wage for next year.

The Korea Confederation of Trade Unions and Federation of Korea Trade Unions said during a press conference in central Seoul Tuesday they want the minimum hourly wage to be 12,000 won ($9.15), or 2.51 million won a month.

That's a 24.7 percent increase from this year. If approved, it will be the first time the minimum wage breaks 10,000 won.

They cite high inflation, reduced real income and the comparatively low wage jump in Korea compared to increases in other large economies as the reasons for the demand.

“The calculation was based on the rapid rise of prices for two consecutive years, the economic growth rate and the rise of the employment growth rate,” according to the unions.

Korea’s inflation was 4.2 percent in March after a recent high of 6.3 percent last July. The OECD forecasts Korea’s inflation at 3.6 percent this year and 2.4 percent next year, higher than the central bank’s 2 percent inflation target.

“An OECD report notes the reduced real wage,” said Yoo Dong-hui, a spokesperson for Federation of Korean Trade Unions.

“Heating bills, a public utility fee, are up 40 percent, electricity bills 20 percent, water tax 71 percent and public transportation fares more than 30 percent,” said Ryu Gi-seop, secretary general of the federation, adding the wage jump is inevitable.

Talks on the minimum wage began after the Lee Jung-sik, minister of employment and labor, requested the start of discussions to the Minimum Wage Commission on March 31.

The commission, with 27 representatives from labor, management and the government, deliberates on the agenda for 90 days from the date of the request. The final minimum wage is annually reported by a labor minister by Aug. 5.

BY KIM JI-HYE, JIN MIN-JI [jin.minji@joongang.co.kr]