After 17 years, South Korea's Minimum Wage Commission has reached an agreement to raise the minimum hourly wage by 2.9% in 2026, settling at 10,320 won. The commission, in its 12th plenary meeting held on July 10 at the government complex in Sejong, decided in favor of a 290-won increase over the current wage. This translates to a monthly amount of 2,156,880 won, based on a standard of 209 working hours per month.

This agreement marks the eighth such consensus since the introduction of the minimum wage system in 1988. It is also the first time in 17 years—since 2008—that labor, management, and public interest members have reached a joint decision. A total of 23 members, including five representatives from the Federation of Korean Trade Unions (while four from the Korean Confederation of Trade Unions did not attend), employer representatives, and public interest members participated in reaching the final deal.

The process involved narrowing the gap between labor and management through 10 rounds of amended proposals, based on a mediation range (1.8% to 4.1% increase) suggested by public interest members. In the final stage, labor proposed an hourly rate of 10,430 won, while management suggested 10,230 won, resulting in a difference of 200 won. Following coordination by public interest members, the hourly wage was set at 10,320 won.

The 2.9% increase is lower than the 5.0% rise enacted in 2023, the first year of the Yoon Suk-yeol administration, but higher than the 1.7% for 2025. Compared to the first years of previous administrations—16.4% under Moon Jae-in and 10.3% under Roh Moo-hyun—it is relatively modest.

The Minimum Wage Commission will submit the newly determined minimum wage to the Ministry of Employment and Labor, which is expected to finalize and announce the details by August 5. The updated minimum wage will take effect on January 1, 2026.

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=Yonhap News Agency