Minimum wage talks miss legal deadline as labor-management gap stands at 1,540 won

Negotiations over next year's minimum wage have advanced to a second round of revised proposals, but the two sides have yet to reach a final agreement.

Labor and management each submitted two rounds of revised bids, narrowing the gap somewhat, but the two sides remain 1,540 won apart.

According to the Minimum Wage Commission, labor and management submitted their first and second revised proposals for the 2027 minimum wage during a closed session of the 10th plenary meeting held Tuesday at the Government Complex Sejong.

In their second revised proposals, labor called for an hourly wage of 11,900 won ($8) — a 15.3 percent increase from the current rate — while management offered 10,360 won, a 0.4 percent rise. Labor lowered its initial demand of 12,000 won by 100 won, while management raised its opening position of 10,320 won — a freeze — by 40 won. The gap narrowed by 140 won, from an initial 1,680 won to 1,540 won.

In the first round of revised proposals, labor had offered 11,970 won (a 16.0 percent increase) and management 10,340 won (a 0.2 percent increase), closing the gap to 1,630 won — a reduction of 50 won. The second round shaved off another 90 won, as labor came down a further 70 won and management moved up 20 won.

Having failed to reach an agreement Tuesday, the commission will hold its 11th plenary session at 3 p.m. Thursday at the Government Complex Sejong to continue deliberations.

The legal deadline for minimum wage deliberations this year was Sunday, June 29, which has already passed.

Even so, the commission must submit its minimum wage proposal to the minister of employment and labor by mid-July to allow time for the remaining administrative procedures.

With that in mind, observers expect a final agreement to come only in mid-July.