What Is Happening With the 2025 Minimum Wage in South Korea?

7월 18, 2025

The South Korean government has recently announced that the national minimum wage for 2025 will be raised to 10,320 KRW per hour, marking a 2.5% increase from 2024. This decision comes after weeks of tense negotiations between labor unions and employer representatives. While the increase may appear modest, it has sparked debate across political, business, and labor sectors.

Why Are Businesses Opposing the Minimum Wage Hike?

Small business owners and corporate groups argue that even a small increase in wages could lead to significant financial burdens. With rising raw material costs and declining consumer demand, many claim that the new rate could push struggling businesses further into crisis. The Korea Federation of Small and Medium Business expressed concerns about possible layoffs and business closures as a result.

How Are Labor Unions Responding to the Increase?

Labor unions have criticized the 2.5% raise as insufficient. They had originally demanded at least 12,000 KRW per hour, citing the growing gap between wages and the cost of living. Representatives from the Korean Confederation of Trade Unions stated that the final decision reflects the government’s bias toward business interests and fails to protect vulnerable workers.

What Do the Public and Analysts Say?

Public opinion is divided. While some citizens support the idea of gradual wage growth to avoid economic shock, others believe that the minimum wage is still too low to ensure basic living standards. Economic analysts note that the decision reflects a careful balancing act between inflation control and worker welfare, though it may do little to address structural inequalities.

What Happens Next, and What Should We Watch?

The new minimum wage will take effect on January 1, 2025. Observers are now watching how both employers and workers respond in practice. Will businesses reduce hiring or increase automation? Will low-income workers experience tangible benefits? The debate over the minimum wage is far from over, and it is expected to be a key issue in the upcoming general elections.

Now Korea