Moon hints at slowing down pace of minimum wage hike

Feb 15, 2019, 08:51 am

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President Moon Jae-in speaks during a meeting with self-employed people and small business owners at his office in Seoul on Feb. 14./ Source: Yonhap

By AsiaToday reporter Hong Sun-mi

In a meeting with self-employed and SME owners on Thursday, President Moon Jae-in hinted at slowing down the pace of minimum wage hike, saying, “I will make sure the self-employed and SME owners have their voices heard in the process of setting the minimum wage.”

However, Moon said, “There may be many different thoughts on the amount or pace of minimum wage hikes. But in the long-term, it should eventually go in the direction of raising it.”

His remarks indicate that the government would slow down the pace of minimum wage hike considering claims of the self-employed and SME owners that their livelihood situations have worsened due to excessive minimum wage hike, yet that raising the minimum wage is inevitable in the long term.

◇ Calls for a “freeze”

Moon invited 157 self-employed business people and small business owners to Cheong Wa Dae to hold a meeting, and said, “The livelihood situations of the self-employed and SME owners are still tough.”

“The competition is getting fierce due to excess entry while high rents and commission fees put a huge burden on their business management,” the president said, “I believe the minimum wage hike would have added further pressure on them.”

As the president brought up the possibility of slowing down the pace of the minimum wage hike during the meeting, the attendees voiced their opinion freely.

“I ask you to freeze the minimum wage next year,” said Bang Ki-hong, chairman of Korean Federation of Small and Mid-sized merchant and Self-employed owners.

In response, Minister of Employment and Labor Lee Jae-gap said, “With restructured minimum wage setting system, small business owners are now able to participate directly in the minimum wage committee so their position can be reflected.”

Another attendee said, “We would like to get job funds, but we have the burden of joining the four major public insurances for employees.” He suggested the government to work on measures where job funds are paid to business owners as long as they get two major insurances.

“We provide job funds to reduce the burden of minimum wage hike, and business owners might find it difficult to be qualified,” the labor minister said. “There is a policy aimed at easing the burden of social insurance.”

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