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(LEAD) Labor, management narrow gap over next year's minimum wage

South Korea's Minimum Wage Commission has finalized next year's hourly minimum wage at 10,700 won, a 3.7% increase from this year. The decision came after labor and management representatives narrowed their gap through multiple revised proposals, with the commission ultimately voting on the management-side proposal. A business lobby group expressed regret over the increase, citing hardships for small businesses.

By Tertius News AI Desk 1 outlet · 6 articles Version 1 Coverage Jul 7–15, 2026 Published Aug 15

Lead

South Korea's Minimum Wage Commission on Tuesday decided to set next year's legal hourly minimum wage at 10,700 won (US$7.20), up 3.7 percent from this year's rate of 10,320 won, according to multiple reports from Yonhap News.

The commission, a trilateral panel composed of representatives from labor, business, and public interest groups, made the final decision after labor and management members presented 13 revised proposals during intense negotiations, Yonhap reported.

Coverage Comparison

Yonhap News provided consistent reporting on the outcome, noting that the labor side had initially proposed 12,000 won, while management had called for freezing the minimum wage at this year's level. As the two sides failed to close the gap between their final proposals — labor at 10,730 won and management at 10,700 won — the commission put the matter to a vote and ultimately chose the management side's proposal, according to Yonhap.

Earlier in the negotiation process, the gap between the two sides' proposals had narrowed considerably. On July 9, labor proposed 11,250 won per hour and management proposed 10,520 won, a difference of 730 won, Yonhap reported. The labor side had lowered its previous proposal by 100 won, while management raised its amount by 30 won.

Before that, on July 7, labor representatives had lowered their proposal to 11,450 won in their sixth revision, while business offered 10,460 won, leaving a gap of 990 won, Yonhap reported. The proposals at that stage represented increases of 10.9 percent and 1.4 percent, respectively, from this year's minimum wage.

When the final negotiations began on July 14, labor and management had narrowed the difference to 690 won, with labor proposing 11,220 won and management proposing 10,530 won, according to Yonhap. The public interest representatives were expected to propose a "deliberation facilitation" range to encourage the two sides to reach an agreement or put the matter to a vote, Yonhap reported.

Key Claims

The Minimum Wage Commission set next year's hourly minimum wage at 10,700 won, a 3.7 percent increase from this year's 10,320 won, as reported by Yonhap.
The labor side initially proposed 12,000 won, while management called for a wage freeze, according to Yonhap.
The commission made the final decision after 13 revised proposals were presented during negotiations, as stated by Yonhap.
As the two sides failed to narrow the gap further, the commission put the decision to a vote and selected the management side's proposal, Yonhap reported.
The Minimum Wage Commission is required to finalize the new minimum wage by mid-July for a formal announcement by the labor minister by Aug. 5, according to Yonhap.

Perspectives

Federation of Korean Industries: The major business lobby group expressed regret over the decision, saying that although small business owners had hoped for a freeze, the increase exceeds last year's. The federation added that the new wage rate will "inevitably worsen the financial hardships faced by micro-enterprises and the self-employed," and expressed disappointment that the commission rejected its proposal to apply differential minimum wage rates for struggling sectors such as hospitality and food services.