South Korea's business lobbies have expressed concerns over a sharp increase in the minimum wage for next year, saying it could worsen business conditions and undermine job creation.

The Minimum Wage Commission, a trilateral council of representatives from labor, management and the general public, decided on Saturday to raise the minimum wage for next year by 16-point-four percent or one-thousand-60 won to seven-thousand-530 won per hour.

Right after the decision, the Korea Employers Federation issued a statement to express deep concern about the sharp raise, saying that the decision ignored small and mid-sized businesses which are already suffering from difficult economic conditions.

An official at the Korea Chamber of Commerce and Industry also said that while there is social consensus for the need to increase the minimum wage, if it hikes too much, the burden mainly falls on small business owners and could eventually lead to a reduction in new jobs.