(3rd LD) Two-thirds of small biz owners call for freeze of minimum wage: poll

(ATTN: ADDS wage talks in paras 8-11; RESTRUCTURES) SEOUL, June 26 (Yonhap) -- Nearly two-thirds of self-employed small business owners say their business conditions have worsened this year and are calling for the minimum wage to be frozen or lowered, a poll showed Thursday. According to the survey conducted by the Federation of Korean Industries (FKI), 63.4 percent of 500 respondents said their business conditions have deteriorated compared with last year. Only 6.8 percent said they have improved, while 29.8 percent said their conditions remained about the same. On the level of burden caused by the current minimum wage of 10,030 won (US$7.37) per hour, 50 percent of the respondents said it was heavy, 30.6 percent said it was moderate, and 19.4 percent said it was not a burden. This file photo, taken April 18, 2025, shows a shopping complex with small restaurants in central Seoul. (Yonhap) By industry, businesses in lodging and food services felt the most burden, at 64.2 percent, followed by wholesale and retail at 51.9 percent, education services at 50 percent and manufacturing at 48.4 percent. When asked about the minimum wage, 59.2 percent said it should be frozen or reduced. Support for freezing the minimum wage stood at 44.2 percent, while 15 percent called for a reduction. Also, 30.4 percent of respondents said they earn less than the current statutory minimum wage, which amounts to roughly 2.1 million won per month based on the standard 40-hour workweek system. The Minimum Wage Commission, a trilateral panel composed of representatives from labor, management and the general public, has been in negotiations since April over the national minimum hourly wage for 2026. On Thursday, the commission missed the legal deadline for minimum wage deliberations, as labor and business representatives failed to narrow their differences. The two sides are set to resume talks on July 1, officials said. The labor side initially demanded a 14.7 percent increase, proposing an hourly wage of 11,500 won, but later revised its offer down slightly to 11,460 won. Initially pushing for a wage freeze, the business side later offered a 0.4 percent increase to 10,070 won per hour. Given due administrative procedures, the commission must submit a final proposal to the labor minister by mid-July. The labor ministry is required to finalize and announce next year's minimum wage by Aug. 5. An FKI official said a cautious approach is needed when determining next year's minimum wage and stressed the need to consider employers' ability to pay and overall labor market conditions. odissy@yna.co.kr(END)

https://img.yna.co.kr/photo/cms/2025/04/18/64/PCM20250418000164990_P2.jpg

(ATTN: ADDS wage talks in paras 8-11; RESTRUCTURES)

SEOUL, June 26 (Yonhap) — Nearly two-thirds of self-employed small business owners say their business conditions have worsened this year and are calling for the minimum wage to be frozen or lowered, a poll showed Thursday.

According to the survey conducted by the Federation of Korean Industries (FKI), 63.4 percent of 500 respondents said their business conditions have deteriorated compared with last year. Only 6.8 percent said they have improved, while 29.8 percent said their conditions remained about the same.

On the level of burden caused by the current minimum wage of 10,030 won (US$7.37) per hour, 50 percent of the respondents said it was heavy, 30.6 percent said it was moderate, and 19.4 percent said it was not a burden.

This file photo, taken April 18, 2025, shows a shopping complex with small restaurants in central Seoul. (Yonhap)

By industry, businesses in lodging and food services felt the most burden, at 64.2 percent, followed by wholesale and retail at 51.9 percent, education services at 50 percent and manufacturing at 48.4 percent.

When asked about the minimum wage, 59.2 percent said it should be frozen or reduced. Support for freezing the minimum wage stood at 44.2 percent, while 15 percent called for a reduction.

Also, 30.4 percent of respondents said they earn less than the current statutory minimum wage, which amounts to roughly 2.1 million won per month based on the standard 40-hour workweek system.

The Minimum Wage Commission, a trilateral panel composed of representatives from labor, management and the general public, has been in negotiations since April over the national minimum hourly wage for 2026.

On Thursday, the commission missed the legal deadline for minimum wage deliberations, as labor and business representatives failed to narrow their differences. The two sides are set to resume talks on July 1, officials said.

The labor side initially demanded a 14.7 percent increase, proposing an hourly wage of 11,500 won, but later revised its offer down slightly to 11,460 won.

Initially pushing for a wage freeze, the business side later offered a 0.4 percent increase to 10,070 won per hour.

Given due administrative procedures, the commission must submit a final proposal to the labor minister by mid-July. The labor ministry is required to finalize and announce next year’s minimum wage by Aug. 5.

An FKI official said a cautious approach is needed when determining next year’s minimum wage and stressed the need to consider employers’ ability to pay and overall labor market conditions.

odissy@yna.co.kr
(END)