An association representing small business owners has called on the government to improve regulations for micro businesses following the restructuring of the Minimum Wage Commission.

Choi Seung-jae, president of the Korea Federation of Micro Enterprise, held a news conference on Tuesday and expressed opposition to minimum wage hikes which he said only benefit labor unions at large companies.

Choi said that the unilateral implementation of the increased minimum wage has led to a vicious cycle where employers are pushed to lay off workers and shut down businesses. 

He said the government promised institutional improvement but has yet to keep its word.

The Federation of Micro Enterprise suggested a number of proposals, including introducing different levels of minimum wages depending on company size and support measures for small-scale business people who have been hit hard by the minimum wage hike. 

The federation also wants the government to ease qualifications in applying for employment stabilization subsidies and provide more public sector jobs to micro enterprises.