Labor groups demand 16.3% increase in minimum wage to 12,000 won

Labor groups on Monday demanded a legal minimum wage of 12,000 won ($7.90) next year in what would be a 16.3 percent increase from this year's rate.

The country's two umbrella labor unions — the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions — disclosed their first minimum wage proposal during a press conference, during which they stated that the average increase of the past three years was less than the average inflation rate over the same period.

The minimum wage is set each year by the Minimum Wage Commission, which is made up of labor, business and public interest representatives.

The commission has been meeting regularly since April to decide on next year's rate, with the sixth plenary session scheduled for Tuesday.

This year's minimum hourly wage is 10,320 won, up 2.9 percent from last year.

The business circle has yet to announce its proposal, but market observers expect them to call for a freeze or a smaller increase.

Yonhap