Biz lobby group expresses regret over next year's minimum wage decision

The Federation of Korean Industries, a major business lobby group, on Wednesday expressed regret over next year's legal hourly minimum wage, which was set at 10,700 won ($7.20).

The decision by the Minimum Wage Commission represents a 3.7 percent increase from the current rate of 10,320 won.

"Although small business owners had hoped for a freeze, we regret that the minimum wage, exceeds last year's increase," the federation said in a press release.

The business lobby group added that the new wage rate will inevitably worsen the financial hardships faced by micro-enterprises and the self-employed.

The federation also expressed disappointment that the commission rejected its proposal to apply differential minimum wage rates for struggling sectors, such as the hospitality and food services industries.

The commission, which consists of representatives from labor, business and public interest groups, finalized the rate after labor and management members presented 13 rounds of revised proposals during intense negotiations.

The labor side initially proposed 12,000 won, while management called for ...