Next year's minimum wage set at 10,700 won, up 3.7%

South Korea's minimum wage for next year has been set at 10,700 won ($7) per hour, a 380-won, or 3.7 percent, increase from this year's 10,320 won.

The Minimum Wage Commission voted to fix the rate at its 14th plenary session, held Tuesday at Government Complex Sejong.

Labor and management had engaged in last-minute negotiations over a compromise proposal of 10,720 won — a 3.9 percent increase — put forward by the commission's public interest members, but the talks collapsed after labor rejected the recommendation.

Labor then submitted a final revised proposal of 10,730 won, a 4.0 percent increase, while management proposed 10,700 won, or 3.7 percent. In the vote that followed, the employers' proposal received 15 votes against 11 for the labor side, with one ballot ruled invalid, making the management proposal the final decision.

The statutory deadline for this year's minimum wage deliberations had already passed on June 29. The commission's decision will be submitted to the Employment and Labor minister, who will finalize and officially announce the minimum wage by Aug. 5 following an objection process. The new rate takes effect Jan. 1, 2027.