Seoul: The Minimum Wage Commission on Tuesday decided to set next year's legal hourly minimum wage at 10,700 won (US$7.20), reflecting a 3.7 percent increase from this year. The decision was made following extensive deliberations among representatives from labor, business, and public interest groups.

According to Yonhap News Agency, the commission reached the final decision after a series of negotiations in which labor and business members presented 13 revised proposals. Initially, the labor representatives advocated for a minimum wage of 12,000 won, whereas the management side wished to maintain the current rate of 10,320 won.

Despite attempts to bridge the gap, both sides concluded with final proposals of 10,730 won from the labor side and 10,700 won from the management. Ultimately, the commission opted to vote on the matter, selecting the management's proposal of 10,700 won.

The commission faced a deadline to finalize the new minimum wage by mid-July, ensuring a formal announcement by the labor minister by August 5. This year's increase follows a 2.9 percent rise from the previous year, indicating a continued upward trend in the minimum wage.