Korean lawmakers begin discussions on minimum wage hike

A hike in the minimum wage... has been a hot topic of discussion since Finance Minister Choi Kyung-hwan highlighted the need for one... earlier this week.
But it has also fueled concerns that too big of a jump could end up putting small- and mid-sized firms out of business.
Here's our Kwon So-a.


Five-thousand-2-hundred Korean won,... or a little more than 5 U.S. dollars an hour,... is the current minimum wage in Korea.
The amount has risen steadily over the years,... but many say it should be climbing faster.

With around three months remaining for the government to decide on a minimum wage hike, ahead of a yearly wage review, it's become a hot potato in the political arena.
It was on the table at two meetings on Friday -- one between senior officials from the presidential office, the government and the ruling Saenuri Party... and another held by the main opposition New Politics Alliance for Democracy.
The parties at both meetings seemed to see eye-to-eye on remarks by Finance Minister Choi Kyung-hwan earlier this week, when he talked about the possibility of deflation if things stay the way they are.


"Unless we raise the minimum wage,... we'll have no chance of reviving the economy. It has gotten to the point that we plan to provide tax deductions for companies that raise salaries to a level higher than the average of the past three years."

Adding to this, a report, out Friday, says raising the minimum wage will lead to an increase in the labor share, or the ratio of wages to GDP,... and eventually lead to an increase in employment.
But there are also opposing voices from employers and business associations,... as there are concerns that a hike to six or seven U.S. dollars an hour could cause big problems for the nation's small firms.
In line with this, the Korea Employers Federation has recommended that companies refrain from raising hourly pay by more than one-point-six percent.
Kwon Soa, Arirang News.