Photo: Minimum Wage Commission votes on the 2025 minimum wage proposals. Credit: Ministry of Labor and Employment.
On July 10, the Minimum Wage Commission 최저임금위원회 voted to raise the minimum wage for 2026 by 2.9%, to KRW 10,320 (USD 7.45) per hour. The commission, made up of representatives from labor unions, corporations and experts in labor and welfare, arrived at the new minimum wage based on a consensus vote - the first time since 2008 the commission managed to reach a consensus.
South Korea’s new minimum wage is slightly higher than the OECD average, and is the highest in Asia, outpacing minimum wages in other advanced economies such as Japan and Taiwan. South Korea’s high minimum wage has been cited as one factor in maintaining strong domestic demand, making the country less vulnerable to global economic shocks and avoiding “Japanization.” (See previous coverage, “How South Korea Avoided Japanization.”)
