Seoul: The Minimum Wage Commission on Tuesday announced a decision to increase the legal hourly minimum wage for the coming year to 10,700 won (approximately US$7.20), marking a 3.7 percent increase from the current rate. This resolution follows extensive negotiations, where labor and management representatives tabled a total of 12 revised proposals.

According to Yonhap News Agency, the labor representatives initially proposed a higher increase, seeking to raise the wage to 12,000 won. In contrast, the management representatives advocated for maintaining the minimum wage at its current level. After thorough deliberations, the commission, which comprises representatives from labor, business, and public interest groups, reached a compromise on the 10,700 won rate.

The decision comes as part of the commission's mandate to finalize the new minimum wage by mid-July each year. This timing allows for a formal announcement by the labor minister, which is scheduled to occur by August 5. The current year's minimum hourly wage saw a 2.9 percent increase from the previous year, reflecting a continuing trend of incremental wage adjustments.