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S.Korea to raise minimum wage by 1.5% next year in smallest hike ever

SEOUL, July 14 (Reuters) - South Korea said on Tuesday it planned to raise the national minimum hourly wage by the smallest amount on record for 2021, as the coronavirus pandemic hit businesses and labour markets.

The Minimum Wage Commission agreed on an increase of 1.5% to 8,720 won ($7.23) an hour for next year, smaller than this year’s hike of 2.87% and the least of all time.

Such an increase would mean a combined hike of 34.8% in the hourly minimum wage since labour-friendly President Moon Jae-in took office in 2017, but falls short of his initial promise of an increment of 55%, to 10,000 won, by 2020. ($1=1,206.7400 won)

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Reporting by Joori Roh; Editing by Clarence Fernandez