Minimum Wage in South Korea: Rates, Trends & Compliance

What Is the Minimum Wage in South Korea?

As of January 1, 2025, South Korea's minimum wage is set at 10,030 Korean Won (KRW) per hour, marking a 1.7% increase from the previous year's rate of 9,860 KRW per hour. This translates to approximately 2,096,270 KRW per month for a full-time employee working 209 hours per month. In U.S. dollars, the hourly rate is approximately $7.21, though this may vary with exchange rate fluctuations.

How Does Minimum Wage Apply to Different Workers in South Korea?

South Korea's Minimum Wage Act applies universally to all employees, regardless of employment status or nationality. This includes full-time, part-time, temporary, daily, and foreign workers. However, there are specific considerations and exceptions for certain categories of workers.

Full-Time Employee Wages

Full-time employees are entitled to the standard minimum wage of 10,030 KRW per hour as of 2025. This rate is consistent across most industries, ensuring a uniform baseline for compensation. Employers are obligated to comply with this standard to promote fair labor practices nationwide.

Part-Time Employee Wages

Part-time employees are also entitled to the minimum wage of 10,030 KRW per hour. The Minimum Wage Act ensures that part-time workers receive the same hourly rate as their full-time counterparts, promoting equitable treatment across different employment types.

Interns and Trainees

Interns and trainees are generally entitled to the minimum wage. However, the law allows for exceptions during probationary periods. Specifically, for employees under a contract of one year or more, employers may pay a wage below the minimum wage during the first three months of employment, provided the work is not classified as simple labor. This provision is designed to accommodate training periods while ensuring fair compensation.

Expats

Expatriates working in South Korea are subject to the same minimum wage laws as domestic workers. The Minimum Wage Act explicitly states that it applies to all employees, regardless of nationality. This ensures that foreign workers receive equitable compensation and are protected under South Korean labor laws.

Factors Influencing Minimum Wage in South Korea

Several factors influence the determination and variation of the minimum wage in South Korea, including industry-specific considerations, economic conditions, and government policies.

Industry-Specific Variations

While the standard minimum wage applies across most sectors, certain industries may have specific wage considerations. For instance, sectors with high demand for skilled labor might offer wages above the minimum to attract qualified employees. Conversely, industries facing economic challenges may advocate for exceptions or adjustments to the standard rate.

Economic Conditions

Economic factors such as inflation and employment rates play a significant role in shaping minimum wage policies. The government assesses these indicators to ensure that wage adjustments align with the broader economic environment, aiming to balance fair compensation with economic sustainability.

Government Policies and Legislation

The South Korean government, through the Minimum Wage Commission, regularly reviews and sets the minimum wage. This process involves consultations with representatives from labor, management, and the public to reach a consensus that reflects the interests of all stakeholders. The goal is to establish a wage standard that supports workers' livelihoods while considering the economic realities faced by employers.

Minimum Wage History and Trends in South Korea

South Korea implemented its Minimum Wage System on January 1, 1988. Over the years, the minimum wage has seen various adjustments, reflecting the country's economic growth and changing labor market conditions. In recent years, the rate of increase has moderated, with a 1.7% rise in 2025, the lowest since 2021. This trend indicates a cautious approach to balancing fair wages with economic stability.

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