Minimum Wage Commission reaches agreement on next year's minimum wage at KRW 10,320 per hour

The minimum wage for next year has been set at 10-thousand 320 Korean won.

That's about 7 U.S. dollars and 50 cents.

The settlement was produced through the very first agreement between all the negotiating parties in 17 years.

Our Kim Bo-kyoung has more.

Starting next year, the hourly minimum wage would be 10-thousand-3-hundred-20 Korean won, around seven dollars and 50 cents.

This, as the Minimum Wage Commission reached an agreement on Thursday, to raise the minimum wage by 2-hundred-90 Korean won, that is two-point-nine percent, from this year's minimum wage of 10-thousand-30 Korean won per hour.

If one works a standard monthly workload of two-hundred-nine hours, the new minimum wage translates to a monthly income of two million one hundred fifty-six thousand eight hundred eighty won.

The commission is made up of nine representatives each from labor, management and the general public, obliged to review the new minimum wage by mid-July for the labor minister to make a formal announcement by early August every year.

This year's decision marks the first agreement reached among the three sides in 17 years.

If an agreement can't be made, the increase is decided by majority vote.

The 2-point-9-percent increase is the lowest first-year hike under any administration since 2000, though minimum wage increases tend to be higher than average in the first year of a new administration.

During first year of the Moon Jae-in administration, the minimum wage was raised by more than 16-percent, while for the first year of the Yoon Suk Yeol administration, it went up by five percent.

The management side said they agreed to the decision after much deliberation

"It was a very difficult decision, made based on the thought that it would be better to support harmony and unity as the new government begins, rather than create more conflict."

while, the labor side said the government should come up with measures to help low-paid workers.

"It would be the Lee Jae Myung administration's task to deal with any areas that are insufficient. It must come up with strong measures to help low-wage workers cover their living costs."

After the Commission submits an agreed minimum wage for next year to the labor ministry, the ministry will finalize and announce it by August 5th, after the review process.

The new rate will take effect starting the very first day of January next year.

The presidential office called the commission's decision significant and added that the government will actively ensure the minimum wage is followed through promotion, guidance, and supervision.

Kim Bo-kyoung, Arirang News.