The Japan Institute for Labour Policy and Training (JILPT) reported on South Korea's minimum wage system reform plan as overseas labor information.
The South Korean government is considering comprehensive minimum wage system reform that takes into account regional economic disparities and living cost differences, with comprehensive review including transition from the current nationwide uniform system to regional minimum wage systems being advanced. The reform plan includes major examination items such as wage level setting reflecting differences in economic conditions between the capital region and local areas, burden reduction measures for small and medium enterprises, and strengthening safety nets to maintain worker living standards.
Specifically, introduction of regional minimum wage calculation methods that comprehensively consider regional price levels, corporate payment capabilities, and employment impacts, roadmap development for phased transition, and development of support systems for affected workers are under consideration. The importance of consensus-building processes between labor and management accompanying system changes is also emphasized.
This reform is positioned as part of South Korea's regional balanced development policy, aiming to achieve both nationwide economic growth and regional disparity reduction. However, careful examination is required regarding challenges such as labor market impacts and system complexity.
The article shows that South Korea is attempting to simultaneously achieve worker living improvements and regional economic revitalization through minimum wage system reform that considers regional characteristics, in order to spread the fruits of economic development equally nationwide.