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South Korea Sets 2027 Minimum Wage at 10,700 Won an Hour

The commission's vote ends a deadlocked review, signals added pressure on small firms, and has prompted calls for a formal task force to review the wage system.

Overview

  • The Minimum Wage Commission voted late on Tuesday to set the 2027 hourly minimum wage at 10,700 won, a 3.7% rise from this year's 10,320 won.
  • Labor and management narrowed their proposals in repeated bargaining to 10,820 won and 10,620 won respectively before public-interest commissioners proposed a facilitation range of 10,600–10,860 won and the commission put the matter to a vote.
  • Business groups including the Federation of Korean Industries and the Korea Federation of Micro Enterprise warned that the increase will raise effective labor costs for micro‑enterprises and the self‑employed and said requests for industry‑ or region‑specific rates were rejected.
  • Labor unions said the rise is too small to restore real wages after inflation, noting recent minimum wage growth has trailed living‑cost increases and left low‑paid workers worse off.
  • Public‑interest commissioners urged the Ministry of Employment and Labor to form a task force to review coverage and rules ahead of next year's talks as debates over platform worker inclusion and differential rates remain unresolved and the minister must formally announce the rate by Aug. 5.