The Korea Federation of Micro Enterprise (KFME) on the 27th submitted an objection to the Ministry of Employment and Labor (MOEL) over the "minimum wage plan for 2027" and formally urged a reconsideration of the minimum wage. The federation argued that the increase would heighten management burdens for microbusinesses and could lead to reduced hiring.
KFME President Song Chi-young held a press conference that day in front of the Ministry of Employment and Labor (MOEL) in Sejong and said, "Next year's minimum wage increase will add about 79,000 won per month and about 950,000 won per year in labor costs," adding, "For business sites with four employees, the annual expense rises by about 10 million won or more when including the employer's share of the four major social insurance programs."
Song added, "In a situation facing the double blow of falling revenue and an economic downturn, this minimum wage hike could accelerate microbusiness-driven job cuts."
Earlier, the Minimum Wage Commission held a plenary meeting on the 14th and set the 2027 minimum wage at 10,700 won per hour, up 380 won (3.7%) from this year. The Ministry of Employment and Labor (MOEL) on the 16th announced the "minimum wage plan for 2027."
In the objection submitted that day, the Korea Federation of Micro Enterprise (KFME) argued that the plan fails to sufficiently reflect the realities of microbusinesses. The federation criticized the decision as ignoring objective on-the-ground data, citing ◇ the limits of microbusinesses' ability to pay ◇ the application of a single minimum wage that does not account for industry-by-industry differences in ability to pay ◇ deterioration in job quality due to an increase in ultra-short-hour work and polarization in the rate of workers earning below the minimum wage across industries.
Song said, "Four out of 10 microbusiness owners have an average monthly operating profit that does not reach 2 million won, so they cannot even take home the minimum wage's monthly conversion amount of 2,236,300 won," adding, "There is an urgent need to improve the system to reflect on-the-ground difficulties."
The Korea Federation of Micro Enterprise (KFME) also urged the government and the National Assembly to prepare effective management-stability support measures, including ▲ strengthening the representation of microbusinesses within the Minimum Wage Commission ▲ deciding the minimum wage every other year and applying it by industry ▲ bringing back the job stability subsidy.