Seoul: Nearly two-thirds of self-employed small business owners report worsening business conditions this year and are advocating for the minimum wage to be frozen or lowered, a poll revealed Thursday.
According to Yonhap News Agency, the survey conducted by the Federation of Korean Industries (FKI) indicates that 63.4 percent of 500 respondents have experienced a decline in business conditions compared to the previous year. A mere 6.8 percent noted improvements, while 29.8 percent stated their conditions remained roughly unchanged.
Regarding the burden imposed by the current minimum wage, 50 percent of respondents classified it as heavy, 30.6 percent as moderate, and 19.4 percent as not burdensome. The survey highlights that the lodging and food services sector feels the most pressure, with 64.2 percent of businesses reporting a heavy burden. This is followed by the wholesale and retail sector at 51.9 percent, education services at 50 percent, and manufacturing at 48.4 percent.
When queried on the minimum wage, 59.2 percent of respondents suggested it should either be frozen or reduced. Support for maintaining the current wage level stood at 44.2 percent, while 15 percent advocated for a reduction. The existing minimum wage is set at 10,030 won (US$7.37) per hour.
Additionally, 30.4 percent of those surveyed stated they earn less than the current 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 need for a cautious approach in setting next year's minimum wage, underscoring the importance of considering employers' capacity to pay and the overall labor market conditions.