Self-employed business owners' burden grows with next year's minimum wage increase

As next year’s minimum wage has been set at 10,700 won per hour, the labor cost burden on small business owners and the selfemployed is increasing. Based on a 40hour workweek, the monthly equivalent comes to 2,236,300 won, and some business owners are considering reducing the number of parttime workers or introducing unmanned ordering kiosks. Store owners in downtown commercial districts such as Mapogu, Seodaemungu, and Jongnogu in Seoul said their management pressure has grown even more as it is compounded by rising electricity bills and raw material costs. The decision by the Minimum Wage Commission is a 3.7% increase from this year, higher than the inflation rate the government had projected. The industry argues that the actual burden is even greater when the four major insurance premiums and weekly holiday pay are included. Small and mediumsized business groups and small business associations expressed concern that this could lead to reduced hiring or business closures.