Image Credits : Korea Joongang Daily
South Korea’s ruling People Power Party (PPP) has sparked a fresh debate by proposing a separate minimum wage system for foreign workers. The move advocated during a recent National Assembly seminar, is aimed at alleviating the financial strain on small businesses and addressing the country’s acute labour shortages driven by its declining birthrate and ageing population.
Leading the call, PPP lawmaker Representative Na Kyung-Won emphasized that the current minimum wage—set to increase to 9,860 won ($7.29) per hour next year—poses significant challenges for small business owners. Many, particularly in sectors like farming and caregiving, struggle to absorb the rising costs associated with employing foreign labour.
Supporters argue that a differentiated wage system would ease the burden on industries dependent on foreign workers, particularly in childcare and eldercare, where costs for foreign caregivers often exceed 2 million won per month, making them inaccessible to many families. Economists backing the proposal contend that a lower wage scale for foreign workers could boost employment and make critical services more affordable.
However, the proposal has met with sharp criticism from labour advocates. The Federation of Korean Trade Unions warned that implementing a separate minimum wage could deepen inequality and lead to further exploitation of foreign workers, who are already in vulnerable positions.
The idea of a differentiated wage system comes amid increasing reliance on foreign workers to meet South Korea’s labour demands. With the population ageing rapidly, many expect foreign labour to become even more critical in the years ahead. Nevertheless, the push to introduce lower wages for foreign workers remains a contentious issue, with critics urging caution to avoid exacerbating labour conditions.
The challenge for policymakers will be to balance economic necessity with the ethical considerations of wage equality, a debate likely to shape the future of South Korea’s labour landscape.