South Korea finance minister to focus on impact of minimum wage hikes

[SEOUL] South Korea's finance minister on Tuesday said he will focus on assessing the impact of recent steep minimum wage hikes on the job market and prepare measures to fund small businesses under financial strain.

"Inevitably we will focus on the impact from minimum wage (hikes) in economic policymaking in the second half," Kim Dong Yeon said at a government and party meeting in Seoul.

Mr Kim said the government will prepare ways to subsidise low-income earners and small businesses to offset worries of looming job losses following the hikes.

On Saturday, the government-mandated Minimum Wage Commission said next year the minimum wage will increase another 10.9 per cent to 8,350 won (S$10.10) an hour, after a 16 per cent increase for 2018.

REUTERS