Next year's minimum wage to rise to 10,320 won, first decision on pay by Lee gov't
Published: 11 Jul. 2025, 10:37
Updated: 11 Jul. 2025, 20:01
Audio report: written by reporters, read by AI
![This year's minimum wage is displayed on a poster in front of an employment support center in Mapo District, western Seoul on July 3. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/11/4b74d05b-1bb1-4de7-8208-eda9dc0b778a.jpg)
This year's minimum wage is displayed on a poster in front of an employment support center in Mapo District, western Seoul on July 3. [YONHAP]
Next year’s minimum wage will be set at 10,320 won ($7.50) per hour, the first minimum wage decision under the Lee Jae Myung administration.
This also marks the first tripartite agreement between labor, management and public interest groups in 17 years.
The Minimum Wage Commission finalized the 2026 minimum wage on Thursday at 10,320 won per hour, an increase of 290 won, or 2.9 percent, from this year’s rate of 10,030 won.
When calculated on a monthly basis, assuming a 40-hour workweek and 209 working hours per month, the minimum wage amounts to 2,156,880 won.
Initially, labor representatives demanded a 14.7 percent increase to 11,500 won, while management called for a freeze at 10,030 won. With the two sides failing to narrow their differences, public interest commissioners proposed a “deliberation fast-track range” of 10,210 won, or a 1.8 percent increase, to 10,440 won, or a 4.1 percent increase.
Although four worker commissioners affiliated with the Korean Confederation of Trade Unions (KCTU) walked out in protest of the proposed range, the remaining members — including nine public interest commissioners, nine employer representatives and five worker representatives from the Federation of Korean Trade Unions (FKTU) — continued discussions and reached a consensus.
This marks the seventh time the minimum wage has ever been set through a labor-management agreement, and the first since 2008.
![Members of labor, management and public interest groups pose for a photo after reaching an agreement to raise the mininum wage to 10,320 won for next year at the government complex in Sejong on July 11. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/11/01239612-2895-4ef0-8ab3-66378bb2a828.jpg)
Members of labor, management and public interest groups pose for a photo after reaching an agreement to raise the mininum wage to 10,320 won for next year at the government complex in Sejong on July 11. [YONHAP]
The 2.9 percent increase is the lowest first-year adjustment under any administration except for the 2.7 percent hike during former President Kim Dae-jung’s first year, amid the Asian financial crisis.
First-year minimum wage hikes under past administrations were as follows: 7.96 percent during the Kim Young-sam administration, 2.7 percent during the Kim Dae-jung administration, 10.3 percent during the Roh Moo-hyun administration, 6.1 percent during the Lee Myung-bak administration, 7.2 percent during the Park Geun-hye administration, 16.4 percent during the Moon Jae-in administration and 5 percent during the Yoon Suk Yeol administration.
The commission submitted the finalized minimum wage proposal to the Ministry of Employment and Labor on Thursday. After a formal objection period, the ministry will announce the new wage by Aug. 5, and it will take effect on Jan. 1, 2026.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM YEON-JOO [[email protected]]
with the Korea JoongAng Daily
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