Why Both Workers and Bosses Are Unhappy with the 2026 Minimum Wage in South Korea

The recent minimum wage increment in South Korea in the year 2026 has caused a fierce contention in the entire nation. To the workers and employers, the changes are not as good as they are supposed to be; although the government aimed at ensuring that the policy would uplift the workers living standards, they do not feel that the government is doing enough.

The new minimum wage has been fixed at 10,320 won an hour since January 2026, which is approximately a 2.9 percent increment compared to the 2025 one of 10,030 won. This is approximately 2,156,880 won, an average of 209-hour work a month.

Although it has grown, there has been a mixed reaction to the growth, which has been negative on both sides of the labor market.

Employees complain that the growth is insignificant

A majority of the workers are complaining that the wage increment in 2026 is not in line with the increased cost of living in places such as Seoul. The housing prices, transportation costs and food costs have increased tremendously in the past years.

The 2.9% increase can be regarded as good but to most of the low-income workers, that amount will be a low monthly increase, which according to them is insignificant in their capacity to keep up with their daily expenditure.

The culture of passion pay (also called pass) has been criticized by young employees, especially in South Korea, which refers to work where people must be willing to receive low salaries in experience or because it suits their career.

Due to this, labor unions feel that the government ought to have passed a significantly bigger wage increment as the only way of having a genuine living wage.

Small Businesses Say Wage Hike Is Excessive

Meanwhile, on the other side, there are so many small and medium sized businesses which report that the minimum wage would be excessive on their side, as they are already struggling to survive.

Minimum-wage employees are needed by such industries as retail outlets, restaurants, and small manufacturers. As the wage goes up the cost of labor is incurred by the employers and this may have a tremendous impact on the profit margins made.

Some of the businesses in the past wage increase, claimed to cut down on their workforce, shorten their working hours, or postpone the recruitment process because of the increased wage bills.

The small business associations believe that governmental policy of wages does not wholly take into account the financial strain set up on domestic ventures particularly when performing economic decelerations.

Gig Workers Are Left Out

Another issue that is controversial is the fact that a minimum wage of 2026 is not relevant to numerous gig and platform employees, such as delivery riders and some freelance employees.

The Minimum Wage Commission in South Korea chose that these workers would be left out as further research is done in regard to their employment terms. 

Labor groups have been outraged by this move because they argue that millions of employees in the rising gig economy are not covered by wage regulations.

A Deeper Structural Problem

The argument on minimum wage represents a larger problem in the South Korean workforce. The nation depicts a demographic population aged, declining workforce, and growing dependence on migrant workers to supply into the low wage jobs in the manufacturing and agricultural industries.

With the changing nature of the economy, policymakers in the economy are finding it difficult to deal with three conflicting objectives:

• Protecting workers’ incomes
• Helping the small business.
• Sustaining economic competitiveness.

This juggling process is the reason why the decision to have a minimum wage usually caters to the dissatisfaction of both parties.

The Bottom Line

The increase in the minimum wage in South Korea which will take place in 2026 was supposed to uplift the living standards of the workers, however, the outcome proves that the wage policy is a very complicated matter.

Employees believe that the increment is not large enough to cover the rising living expenses, and employers fear that any slight upgrading of wages will add to the cost of running a business and to slow down recruitment.

The debate surrounding the minimum wage in South Korea will probably keep on going as long as the policymaker’s balance between economic growth and employee protection cannot be reached.

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