South Korea Unions Demand 12,000 Won Hourly Minimum Wage for 2027
Korean labor unions proposed a 2027 minimum wage of 12,000 won per hour, a 16.3% increase from the current 13,200 won, during a press conference at Seoul’s Sejong Cultural Hall on December 15. The demand, presented by the Korean Confederation of Trade Unions (KCTU), the Korean Congress of Trade Unions (KCTU), and the All for Minimum Wage Movement, includes a monthly wage of 2.508 million won based on 209 hours of work. This exceeds the 2025 initial proposal of 11,500 won by 500 won, citing stagnant real wage growth amid inflation.
According to the unions, the 2023–2025 average minimum wage increase of 2.37% lagged behind the 2.66% average inflation rate, reducing real wages for low-income workers. They also highlighted that the current minimum wage covers only 78.3% of the 2025 recommended living cost of 2.754 million won monthly. The proposed 12,000 won hourly rate represents 87.4% of the 13,737 won “appropriate” living cost calculation, adjusted for economic conditions and small business realities.
Why it matters
The demand reflects growing pressure on policymakers to address wage stagnation amid rising living costs. Unions argue that the current minimum wage fails to ensure a “dignified life” for workers, citing comparisons to daily meal expenses. The proposal also includes broader reforms, such as eliminating industry-specific wage distinctions and expanding minimum wage protections to gig and disabled workers. These demands could influence negotiations with the Minimum Wage Committee, which will review the proposal in 2025.
What may happen next
The Minimum Wage Committee is expected to begin formal deliberations on the 2026 minimum wage in 2025, with final decisions likely by early 2026. While unions have called for immediate implementation of the 12,000 won rate, analysts suggest the committee may adopt a phased approach to balance worker needs with economic constraints. The outcome could set a precedent for future wage negotiations, particularly in sectors with high reliance on low-wage labor.
Frequently Asked Questions
What is the proposed 2027 minimum wage in South Korea? The labor unions have requested a minimum wage of 12,000 won per hour, equivalent to 2.508 million won monthly based on 209 work hours.
Why do unions argue for this increase? Unions claim the current minimum wage fails to cover 78.3% of the recommended living cost, with real wages declining due to inflation outpacing wage growth over three years.
What are the next steps for the proposal? The Minimum Wage Committee will review the demand in 2025, with potential negotiations leading to a final decision by early 2026.
How might this proposal affect small businesses and broader economic stability? Share your thoughts below.