The small and medium-sized business community urged that next year's minimum wage be frozen at the current level, citing the urgent situation facing small and medium-sized enterprises and self-employed small-business owners.
The Korea Federation of Small and Medium Enterprises held a press conference on the 24th at its Yeouido, Seoul, headquarters to call for a minimum wage decision to ensure the survival of small and medium-sized enterprises and self-employed small-business owners, and demanded a freeze in next year's minimum wage.
At the press conference were Chairperson Lee Jae-gwang of the Korea Federation of Small and Medium Enterprises labor and workforce committee; Yoon Young-bal, a user-side Commissioner of the Minimum Wage Commission and chair of the vending machine operators' cooperative; Geum Ji-seon, president of the Korea Makeup Beauty Association; and Lee Gi-jae, president of the Korea Pet Industry Federation, among other representatives by sector of small and medium-sized enterprises and self-employed small-business owners.
In an appeal, participants said, "If small and medium-sized enterprises and self-employed small-business owners, the backbone of our economy, collapse, the entire working-class economy could be shaken," and requested, "Freeze next year's minimum wage at the current level so that small and medium-sized enterprises and self-employed small-business owners can at least breathe."
Participants also stressed the need to improve the minimum wage system to reflect management conditions by industry. Regarding the agenda item on applying the minimum wage by type of business, which was voted down at the Minimum Wage Commission on the 18th, they said, "Discussion has not progressed due to opposition from labor and the commission's passive stance," and added, "We will continue efforts to ensure industry-by-industry differentiated application can be implemented for the survival and recovery of vulnerable sectors."
The Korea Federation of Small and Medium Enterprises also released results from a recent survey of 994 small and medium-sized enterprises and self-employed small-business owners on difficulties related to the minimum wage and opinions.
According to the survey, 62.6% of small and medium-sized enterprises and self-employed small-business owners said the 2027 minimum wage should be frozen or lowered. In response to whether this year's minimum wage is a management burden, 77.6% said yes, and 52.3% cited the minimum wage increase rate as the main factor in wage growth.
If the minimum wage is raised to an unsustainable level, the most common response, at 48.6%, was that they would cut employment, including reducing new hires and trimming existing staff. In addition, 76.1% of small and medium-sized enterprises and self-employed small-business owners said differentiated application of the minimum wage by type of business is necessary.
Chairperson Lee Jae-gwang of the Korea Federation of Small and Medium Enterprises labor and workforce committee said, "A minimum wage increase that does not consider ability to pay is not a safety net for workers, but can cause side effects that reduce jobs and push small and medium-sized enterprises and self-employed small-business owners to the brink," adding, "Given the conditions of small and medium-sized enterprises and self-employed small-business owners, next year's minimum wage must be frozen at the current level."