An association of local businesses plans to lodge a complaint with the government on next year's minimum wage increase set by a national council of representatives from labor, business and the public.

The Korea Enterprises Federation said on Thursday that the nine-thousand-160-won-per-hour minimum wage will threaten the survival of small and mid-sized businesses struggling to stay afloat amid the COVID-19 pandemic.

The Federation said the wage increase will also adversely affect employment of the disenfranchised section of society.

The lobby said the five-point-one-percent increase is excessive, and does not consider its burden upon businesses. 

Both labor and management can challenge the hike between July 19 and 29 and, if deemed reasonable, the Labor Ministry can request a review by the Minimum Wage Council. However there has never been a review of the minimum wage once it is set by the Council.