The Korea Development Institute (KDI)  projects the minimum wake hike introduced this year could lead to a decrease in jobs by as many as 84-thousand.

KDI is the first state-run think tank to suggest a possible drop in employment due to a higher minimum wage.

However, based on employment trends as of April, the KDI said the decline in hiring appears to be minimal owing to effects from employment stabilization funds of nearly three trillion won provided by the government.

The institute advised that the pace of minimum wage hikes should be adjusted as steep increases can disturb the labor market.

It said that if hourly minimum wage is raised by 15 percent both in 2018 and 2019 for the figure to reach ten-thousand won by 2020, employment could be reduced by 96-thousand next year and 144-thousand the following year.