South Korea Sets 2027 Minimum Wage at 10,700 Won

The Minimum Wage Commission set the 2027 minimum wage at 10,700 won per hour, marking a 3.7% increase from the 2026 rate of 10,320 won. The decision followed a plenary meeting in Sejong where employee and employer representatives failed to reach a consensus. A final vote saw the employer representatives' proposal of 10,700 won defeat the worker representatives' bid for 10,730 won by a margin of 17 to 11 votes.

Prior to the vote, negotiations were deadlocked. Labor unions had initially proposed a 16.3% increase to 12,000 won, citing the 2025 standard monthly living cost of 2.754 million won. Meanwhile, business groups advocated for industry-specific pay floors for restaurants, hotels, and taxi services, arguing that productivity gaps between service sectors and finance necessitated differentiated rates.

The new rate, which equals a monthly wage of 2,236,300 won, exceeds the Bank of Korea's 2.7% consumer price inflation forecast and represents a larger increase than those seen in the previous three years. Additionally, public interest commissioners recommended that the government establish a task force to study extending minimum wage protections to gig workers and those in special employment arrangements. The proposal will be submitted to the Minister of Employment and Labor for an official announcement by August 5, with the new wage taking effect on January 1, 2027.