South Korea has announced that the minimum wage for 2026 will be set at KRW 10,320 ($7.44) per hour, marking a 2.9% increase from the current rate of KRW 10,030. The decision, finalized during the 12th plenary session of the Minimum Wage Commission on July 10, marks the first unanimous agreement among labor, business, and public representatives in 17 years.
At the new hourly rate, a full-time employee working 209 hours per month (a standard 40-hour workweek) will earn KRW 2,156,880 ($1,555)—an increase of about KRW 60,610 from this year.
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| 2026 South Korea Minimum Wage:10.320 KRW ($7.44) per hour |
A Modest Increase Compared to Previous Administrations
The 2.9% raise is modest compared to past first-year increases under other administrations:
- Roh Moo-hyun: 10.3% increase
- Moon Jae-in: 16.4% increase
- Yoon Suk-yeol: 5% increase
Analysts say this tempered adjustment reflects both economic uncertainty and mounting financial pressures on small businesses.
Reactions from Labor and Business
The FKTU expressed deep disappointment, noting that low-wage workers had expected more significant improvements under the Lee Jae-myung administration. They argued that the modest increase is insufficient to cover rising living costs, urging the government to introduce additional support measures for struggling workers.
On the other hand, business groups welcomed the restrained hike. They had pushed for either a freeze or a minimal increase, citing:
- Weak consumer demand
- High interest rates
- Rising labor and operational costs
These concerns are especially pressing for South Korea’s small businesses, which continue to face difficulties. In 2024 alone, more than 1 million small businesses filed for closure, a record high.
The 2026 minimum wage decision highlights the delicate balance between supporting workers and easing pressure on employers. While the increase is smaller than many workers had hoped, it reflects the economic challenges currently facing South Korea and underscores the cautious approach of the new administration.
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| South Korea Minimum Hourly Wage Trend |
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.”
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