Is South Korea's 2025 Minimum Wage Enough for a Decent Life? Workers Say No

The Historic Leap: Minimum Wage Breaks the 10,000 KRW Mark

Did you know? For the first time since the system's introduction in 1988, South Korea's minimum wage has crossed the symbolic 10,000 KRW line, reaching 10,030 KRW per hour in 2025. While this milestone is being celebrated by some, the increase is only 1.7% from the previous year, sparking heated debates about whether it truly reflects the rising cost of living and the needs of workers. The government and Minimum Wage Commission arrived at this figure after months of negotiations, but the controversy is far from over.

Workers' Voices: 'A Decent Life Is Still Out of Reach'

According to a recent survey by the civic group Workplace Gapjil 119, 57.4% of employees believe that the new minimum wage is not enough to guarantee a humane standard of living. The sentiment is even stronger among workers in hospitality and retail, with nearly 60% saying the wage is insufficient. Many respondents argue that, given the current cost of housing, food, and transportation, the minimum wage barely covers basic survival, let alone a comfortable life. The majority of workers surveyed believe a fair minimum wage should be at least 12,000 KRW per hour, translating to a monthly salary of around 2.5 million KRW.

Employers Push Back: SMEs Feel the Pressure

On the other side, small and medium-sized enterprises (SMEs) are voicing serious concerns. A survey by the Korea Federation of SMEs found that over 60% of business owners want the minimum wage frozen or even reduced, citing rising labor costs as a major threat to their survival. For smaller businesses, particularly those with annual sales under 1 billion KRW, the new wage is seen as a heavy burden. Some fear that higher wages could lead to layoffs, reduced hiring, or even business closures, especially in sectors like food service and retail where margins are slim.

Inside the Community: Online Reactions and Heated Debates

If you browse Korean online communities like Theqoo, Nate Pann, Instiz, Naver, Daum, DC Inside, FM Korea, and PGR21, you'll find a wide spectrum of reactions. Positive comments highlight the symbolic victory for workers and hope that higher wages will stimulate consumer spending. Negative voices, however, dominate, with many users—especially small business owners—expressing frustration and anxiety about the increased financial strain. Some typical comments include: 'How can anyone live on this wage in Seoul?' and 'If the government keeps raising the minimum wage, small shops will disappear.' Others call for more nuanced policies, like regional or industry-specific wage adjustments.

Labor Unions vs. Business: The Annual Tug-of-War

Every year, the minimum wage debate becomes a battleground between labor unions and business groups. In 2025, labor unions demanded a 14.7% increase (to 11,500 KRW per hour), arguing that real wages have not kept pace with inflation and that a higher minimum is needed to reduce inequality. Employers, on the other hand, pushed for a freeze, citing economic uncertainty and the struggles of small businesses. The Minimum Wage Commission ultimately sided with a modest increase, but neither side is fully satisfied. The annual negotiation process itself has become a cultural phenomenon, reflecting deeper tensions in Korean society about fairness, growth, and the role of government.

Cultural Context: Why the Minimum Wage Debate Matters in Korea

For international readers, it's important to understand that the minimum wage in Korea is more than just an economic issue—it's a symbol of social justice and the value placed on labor. Since the 2010s, calls for a 10,000 KRW minimum wage have been a rallying cry for progressives and a key issue in presidential elections. The debate touches on broader themes such as generational divides, urban-rural inequality, and the future of the Korean welfare state. Many young Koreans see the minimum wage as a test of whether the country can provide real opportunities for all, not just the privileged.

Comparisons and Global Perspectives: How Does Korea Stack Up?

Globally, Korea's minimum wage is now higher than some countries but still lags behind others when adjusted for cost of living. The rapid increases in recent years have drawn international attention, with some economists praising Korea's efforts to address inequality, while others warn of potential negative effects on employment. In 2018, a sharp hike in the minimum wage led to a 3% drop in employment in manufacturing, especially among smaller firms. The debate continues over whether higher wages truly benefit the most vulnerable or risk pushing them out of the job market.

What's Next? The Future of Minimum Wage Policy in Korea

Looking ahead, the minimum wage will remain a hot topic. Labor groups are already calling for further increases, while business owners warn of economic fallout. The government faces a delicate balancing act: ensuring workers can live with dignity, while not overburdening employers. As the 2026 wage negotiations approach, expect more protests, policy debates, and passionate community discussions. For foreign fans and observers, following this issue offers a window into Korea's evolving society—and the hopes and anxieties of its people.