Finance Minister Hong Nam-ki said on Sunday that the pace of minimum wage growth for next year should be kept low to minimize repercussions on the economy.

Appearing on a KBS TV program Sunday morning, the minister said the Minimum Wage Commission should take into account the economic and employment impacts raising the minimum wage will have.

He also said that private sector financial capacities and market responses should be closely considered.

Hong said that while a higher minimum wage reduces the ratio of low-income earners overall, the higher threshold can lead to job losses in certain segments of the market, such as day labor. Offsetting measures in the form of reducing the pace at which the minimum wage rises are thus required.

The minister also proposed extending government-level discussions on raising the legal retirement age to cope with a demographic decline in the working age population.