Members of Korea’s two major umbrella labor unions hold a press conference in front of the Sejong Center for the Performing Arts in Jongno-gu, Seoul, on June 15, to announce the labor community’s proposed minimum wage for 2027. / Photo by Yonhap News

The labor community has demanded a minimum wage of 12,000 won per hour for next year. This represents a 16.3% increase from the current minimum wage and translates to a monthly salary of 2,508,000 won.

The Federation of Korean Trade Unions (FKTU), the Korean Confederation of Trade Unions (KCTU), and the Minimum Wage Movement Headquarters for All held a joint press conference in front of the Sejong Center for the Performing Arts in Jongno-gu, Seoul, on June 15, to present their initial minimum wage proposal of 12,000 won per hour for 2027.

The proposal translates to 2,508,000 won per month based on a standard 209-hour work month. This is an increase of 1,680 won from the current minimum wage of 10,320 won per hour, which yields 2,156,880 won monthly.

Labor groups argued that recent minimum wage hikes have trailed inflation, eroding the real wages of low-income workers. "Over the past three years, the minimum wage rose at an average rate of 2.37%, falling short of the average inflation rate of 2.66% during the same period," they stated. "The minimum wage is failing to keep pace with the actual cost of living."

To back their claim, they pointed out that while the Minimum Wage Commission's estimated living cost for 2025 stood at 2,754,000 won per month, the actual minimum wage salary for that year sat at just around 2.15 million won. The labor community explained that the appropriate living cost for 2027 translates to 13,737 won per hour, and that they finalized their proposal at 12,000 won—87.4% of that target—taking realistic increase margins into account.

"The low minimum wage hikes that failed to match inflation over the past few years, combined with controversies over corporate bonuses and soaring asset prices, mirror a deepening polarization where the value of labor is heavily discounted compared to capital," said Ryu Kee-sup, General Secretary of the FKTU. "An hourly minimum wage that can't even cover a basic lunch is unacceptable."

Lee Mi-seon, Vice Chair of the KCTU, also emphasized, "An hourly wage of 12,000 won, or 2,508,000 won a month, is the absolute social floor for low-wage workers to survive amidst high inflation and energy costs. This is an internal economic stimulus that can sustain both workers and small business owners alike."

Alongside the wage hike, the labor community called for systemic overhauls. They demanded an end to differential minimum wages by industry, revisions to provisions that allow reduced rates or exemptions for probationary workers and workers with disabilities, and stronger measures to prevent and penalize wage theft. Bridging the blind spots in minimum wage coverage for gig and platform workers was also high on their agenda.

Earlier, the Commission debated whether to extend minimum wage protection to piece-rate workers, such as couriers and delivery riders, but the motion was voted down. The labor community maintains that designated driver services, couriers, delivery workers, cram school teachers, after-school instructors, and home-visit technicians all require minimum wage protections.

In contrast, the business community warns that a minimum wage hike will pile added burdens onto small businesses and vulnerable self-employed sectors. Given that employers have consistently stressed the need for industry-specific wage differentials during this round of deliberations, the 6th plenary session scheduled for June 16 is expected to see a continued clash between labor and management over the issue.

                                                                                                         Kim Nam-hyeong