Seoul: Nearly two-thirds of self-employed small business owners report deteriorating business conditions this year and are advocating for the minimum wage to be frozen or lowered, a recent poll indicated.
According to Yonhap News Agency, the survey conducted by the Federation of Korean Industries (FKI) revealed that 63.4 percent of 500 respondents expressed that their business conditions have worsened compared to last year. A mere 6.8 percent of respondents noted improvements, while 29.8 percent observed no significant change in their business environment.
Regarding the burden of the current minimum wage of 10,030 won (US$7.37) per hour, half of the respondents described it as heavy, 30.6 percent deemed it moderate, and 19.4 percent felt it was not burdensome. The Minimum Wage Commission, a trilateral panel including representatives from labor, management, and the general public, has been in discussions over the national minimum hourly wage for 2026 since April.
On Thursday, labor representatives called for a 14.7 percent increase to 11,500 won, while the management sector proposed a 30 won increase, reversing its earlier stance to maintain the current wage. The lodging and food services sector felt the greatest burden at 64.2 percent, followed by wholesale and retail at 51.9 percent, education services at 50 percent, and manufacturing at 48.4 percent.
When questioned on the minimum wage, 59.2 percent of respondents supported a freeze or reduction. Specifically, 44.2 percent favored freezing the wage, while 15 percent sought a reduction. Additionally, 30.4 percent of respondents reported earning below the statutory minimum wage, which equates to approximately 2.1 million won per month based on a standard 40-hour workweek.
An FKI official emphasized the necessity for a cautious approach in setting next year's minimum wage, highlighting the importance of considering employers' capacity to pay and the overall state of the labor market.