Seoul: Labor and management representatives negotiating next year's legal hourly minimum wage have made significant progress, narrowing their proposal gap to 200 won (US$0.13) on Tuesday. This development comes amid ongoing efforts to reach a final agreement.

According to Yonhap News Agency, the labor side presented a proposal of 10,820 won for the hourly minimum wage for the upcoming year, while the management countered with a proposal of 10,620 won during the 11th revised proposal meeting of the Minimum Wage Commission. These figures represent increases of 4.8 percent and 2.9 percent, respectively, from the current minimum wage of 10,320 won.

Initially, the labor representatives had proposed a higher figure of 12,000 won, whereas the management advocated for maintaining the current wage without any increase. The recent proposals were influenced by public interest representatives, who suggested setting the upcoming year's hourly minimum wage between 10,600 and 10,860 won, indicating a potential increase of 2.7 to 5.25 percent from this year's wage.

The Minimum Wage Commission, comprising representatives from labor, business, and public interest groups, is tasked with finalizing the new minimum wage by mid-July. The labor minister is expected to make a formal announcement by August 5. As the deadline approaches, representatives are anticipated to engage in extensive negotiations on Tuesday to determine the final hourly minimum wage for the next year.

This year's minimum hourly wage saw a 2.9 percent increase compared to last year, setting a precedent for the current negotiations.