[South Korea] Smallest ever minimum wage increase announced


7 AUG 2020

On August 5, the South Korean government announced next year's minimum wage of 8,720 won (US$7.32) per hour, an increase of 1.5 per cent from 2020. The increase will take effect on January 1, 2021. The Ministry of Employment and Labor made the public announcement, the new minimum wage was set by the Minimum Wage Commission on July 14.

It is the smallest increase since the system was introduced in 1988, a result of South Korea’s economic slowdown during the coronavirus pandemic. The previous lowest increase was a 2.7 per cent hike in 1998 when the nation was hit by the Asian financial crisis. The new minimum wage will be applicable to all workplaces regardless of their type. The new rate is equivalent to 1,822,480 won for employees working 40 hours a week. Yonhap News Agency has further details of how the final figure was reached.

 

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