South Korea's major labor groups are calling for a significant hike in the national minimum wage. For 2026, they propose an hourly wage of 11,500 KRW, a 14.7% increase from the current 10,030 KRW. Meanwhile, employer representatives argue that even a 1% increase would be difficult due to ongoing economic uncertainty.
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| South Korea’s Labor Unions Demand 11,500 KRW Minimum Wage for 2026 |
Labor Unions Demand 11,500 KRW Hourly Minimum Wage for 2026
On June 11, 2025, the “Living Wage for All” campaign group—a coalition including the Korean Confederation of Trade Unions (KCTU), the Federation of Korean Trade Unions (FKTU), and civil society group People’s Solidarity for Participatory Democracy (PSPD)—held a press conference in Seoul to announce their official 2026 minimum wage proposal.
Their demand: 11,500 KRW per hour, an increase of 1,470 KRW (14.7%) from the current 10,030 KRW hourly wage.
They criticized the Yoon Suk-yeol administration’s decisions to raise the minimum wage by only 2.5% in 2024 and 1.7% in 2025, calling them “ultra-low increases that undermine the legal purpose of the minimum wage system—ensuring stable livelihoods for low-wage workers.”
The unions based their proposal on calculations of reasonable living expenses for average households. Their assumptions include:
- 1.425 income earners per household
- 82.5% of living costs covered by labor income
- Resulting in a realistic living wage of approximately 12,732 KRW
Despite that, they settled on 11,500 KRW to reflect:
- long-term economic downturn (장기 경기침체)
- currency instability (환율 불안)
- global economic uncertainty (불확실한 글로벌 경제)
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| South Korea's minimum wage trend by year |
Employers’ Side: “Even a Freeze Would Be Hard”
While labor groups have submitted a formal proposal, employer representatives have not yet presented an official wage offer. However, the prevailing sentiment among business groups is that a wage freeze or zero increase may be the most feasible option.
Ryu Ki-jung, executive director of the Korea Employers Federation (KEF) and a member of the Minimum Wage Commission, stated:
“The economy is in a broad crisis. In sectors like food and hospitality, employment numbers are falling fast. Small business owners simply aren’t in a position to absorb a wage increase. It’s difficult to even discuss any percentage hike right now.”
This stark divide between labor and business sets the stage for what could be a tense round of negotiations at the Minimum Wage Commission in the coming weeks.
Learn Korean Through This News
Korean Text:
“노동계가 내년 치 최저임금으로 올해보다 14.7% 오른 시급 1만1500원을 요구했다. 사용자 쪽은 1% 인상도 어렵다는 분위기다.”
Key Vocabulary:
- 노동계 – labor sector; labor unions
- 내년 치 – for next year
- 최저임금 – minimum wage
- 시급 – hourly wage
- 요구하다 – to demand, to request
- 사용자 쪽 – the employer side
- 인상 – raise, increase
- 어렵다 – to be difficult
- 분위기 – atmosphere, sentiment
Grammar Notes:
- ~보다: used for comparison; 올해보다 14.7% 오른 = 14.7% higher than this year
- ~을/를 요구하다: to demand/request something; 시급 1만1500원을 요구했다 = demanded an hourly wage of 11,500 won
- ~도 어렵다: even ~ is difficult; 1% 인상도 어렵다 = even a 1% raise is difficult
- ~다는 분위기다: indicates the general feeling or stance; 어렵다는 분위기다 = the general stance is that it’s difficult
Translation:
“Labor unions have demanded next year’s minimum hourly wage to be set at 11,500 won, which is a 14.7% increase from this year. The employer side, however, is expressing the sentiment that even a 1% raise would be difficult.”
Keywords
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