Labor Ministry sets 2027 minimum wage at 10,700 won

South Korea's Ministry of Employment and Labor set the 2027 minimum wage at 10,700 won an hour on Aug. 5, a 380 won, or 3.7 percent, increase from this year's rate.

The monthly equivalent is 2,236,300 won, based on 209 hours a month and a scheduled 40-hour workweek, the ministry said. The rate will apply uniformly to all workplaces without distinctions by business type, while workers paid under contract systems will not receive a separate minimum wage.

The 3.7 percent increase for 2027 exceeds the rate increases of 2.9 percent in 2026 and 1.7 percent in 2025.

The Minimum Wage Commission deliberated and approved the 2027 rate on July 14 before the ministry formally set and announced it on Aug. 5. The ministry published the proposed 2027 rate on July 16 and ran an objection period through July 27 ahead of its final decision.

The ministry did not accept objections from the Korean Confederation of Trade Unions and the Small Business Owners Association after considering the minimum-wage law's purpose and provisions. It also considered the Minimum Wage Commission's deliberation and decision process in declining the objections filed during that period, the ministry said.

The ministry plans to promote compliance with the 2027 rate through outreach and guidance, as well as workplace guidance and supervision.

Korea's minimum-wage system sets a wage floor and legally requires employers to pay at least that amount to protect low-paid workers. The rate is reviewed and decided based on workers' living costs, wages for comparable workers, labor productivity and income distribution.