Politicians call for increase of minimum wage in single voice

Ruling and opposition parties welcome the remarks by Deputy Prime Minister and Finance Minister Choi Kyung-hwan during a seminar on Wednesday that the minimum wage must be raised in a fast manner (to stimulate the domestic economy). While businesses are in hesitation, it is forecasted that Choi’s remarks may serve as a breakthrough to the structural reform in the labor market, which has been in a stalemate.

In the high-level meeting held at the Prime Minister’s official residence in Seoul on Friday, the ruling Saenuri Party, the administration and the presidential office Cheong Wa Dae reached a consensus to speak with a single voice on the issue of the minimum wage increase. After the meeting, Saenuri floor leader Yoo Seung-min held a press conference at the National Assembly and said, “While the Minimum Wage Committee will lead decisions over the minimum wage, the ruling party, the administration and the presidential office have decided to take the same stance over the issue.”

The main opposition New Politics Alliance for Democracy (NPAD) floor leader Woo Yoon-geun also said in the Supreme Council meeting on the same day, “(NPAD) welcomes the remarks by Deputy Prime Minister Choi. It is desperately needed to increase the minimum wage to a proper level.” Regarding this issue, NPAD Chairman Moon Jae-in also said, “Choi’s remarks can be interpreted that he admitted the ‘income-driven growth policy’ that our party has long been arguing for is right. The administration must accept that the economic policies have failed and needs to change fundamental basis for the economic policies.”

In the meantime, the Korean Confederation of Trade Unions, which participates in the Labor-Management-Government Committee on behalf of the labor sector, paid keen attention to Choi’s remarks and demanded the government to produce substantial results in the minimum wage increase.

legman@donga.com