Major business lobby groups have expressed regret over the government’s decision not to reconsider a minimum wage hike for next year. 

The Korea Employers Federation(KEF) issued a statement on Friday, saying a double-digit growth in the minimum wage for the second consecutive year will put unbearable strain on businesses. 

It said the wage hike did not take into account the low productivity of local workers and the sluggish economic situation and can further constrict business sentiment. 

The Korea Federation of SMEs warned the wage hike, which is set to benefit a quarter of the country’s working population, can impede corporate innovation and investment and worsen unemployment conditions. 

The Association of High Potential Enterprises of Korea said an excessive and unilateral wage hike can amplify unnecessary social conflicts. 

Earlier Friday, the Ministry of Employment and Labor confirmed that the nation’s minimum wage for next year will rise to eight-thousand-350 won per hour. 

The figure represents an increase of ten-point-nine percent from this year, following the 16-point-four percent rise this year from 2016.