Seoul: The Minimum Wage Commission has initiated its first review of the year to consider an increase in the national minimum hourly wage for the upcoming year, as confirmed by officials. This review marks a critical step in determining the potential adjustment of wages that could impact millions of workers across South Korea.

According to Yonhap News Agency, South Korea has seen its minimum hourly wage rise by 1.7 percent to 10,030 won (approximately US$7.03) for the current year, which is noted as the second-smallest increase on record. The labor sector, which had previously advocated for a minimum wage of 12,600 won, is anticipated to demand a larger increase this year due to the prevailing high inflation rate affecting the economy.

Conversely, businesses are expected to lobby for maintaining the wage at its current rate, arguing that any increase would impose a significant burden on small businesses struggling to sustain their operations. As of now, both labor and business representatives have yet to present their initial proposals to the commission.

In a press conference preceding the review session, South Korea's two major labor unions, the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions, emphasized the need for a "realistic" minimum wage that adequately supports people's livelihoods. They also advocated for extending the minimum wage to cover non-regular and platform workers, who often face precarious employment conditions.

This year, the commission is also set to engage in a vigorous debate over the possibility of differentiating the minimum wage based on job sector, a concept that has been part of the legal framework since 1988 but has never been put into practice. The commission, comprising government, labor, and business representatives, is mandated to complete its review within 90 days of receiving the request, though delays beyond this timeframe are not uncommon.