Anchor: A special commission has voted to raise the minimum wage by two-point-nine percent next year to eight-thousand-590 won. After clearing the necessary administrative procedures, the annual increase will be the lowest under the Moon Jae-in administration and the third-lowest ever since the country introduced the threshold in 1988.
Celina Yoon has more.

Report: The Minimum Wage Commission, comprised of labor and business representatives as well as government-picked experts, voted to set the minimum hourly wage for next year at eight-thousand-590 won, two-point-nine percent higher than this year's eight-thousand-350 won rate.

Business representatives had proposed the two-point-nine percent increase, while labor’s final offer before the vote was a six-point-three percent hike.

Once finalized by the Labor Ministry, it will be the smallest increase under President Moon Jae-in, who made raising the minimum wage a key campaign pledge. 

The proposed rate reflects assessments from the private sector, the government and the ruling party that the pace of minimum wage increases over the past two years -- 16-point-four percent and ten-point-nine percent, respectively -- need to slow down as they are exacerbating Korea’s sluggish economic growth.

Moon had earlier pledged to raise the nation's minimum wage to ten-thousand won per hour by 2022 as part of his income-driven growth initiative. 

The commission's decision makes realizing that goal a virtual impossibility.

Shortly after the vote on next year’s wage floor, the umbrella labor group Federation of Korean Trade Unions vowed to contest the decision. It strongly criticized the administration, claiming that its pledges to respect labor, realize a ten-thousand won minimum wage and abolish economic polarization have become “hollow slogans.” 

The business sector, meanwhile, welcomed the two-point-nine percent increase, which is far below the 19-point-eight percent originally put forth by labor in committee negotiations.

They say it should help revitalize the economy and lessen the burden of high labor costs imposed on vendors and small businesses.

The commission will submit its decision to the Labor Ministry, which has until August fifth to finalize the rate. In the interim, those unsatisfied with the vote can protest the decision with the minister, who may choose to request that the commission reconsider the minimum wage rate.
Celina Yoon, KBS World Radio News.