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[BUSINESS] · South Korea · 2 sources

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South Korean local governments lack effective living wage ordinances

A report by the National Institute of Local Finance reveals that only 52% of South Korean local governments have enacted living wage ordinances. Even among those that have, many living wages remain at the same level as the statutory minimum wage, rendering the policy ineffective in many regions.

While all 17 metropolitan local governments have implemented such ordinances, adoption rates among basic local governments vary significantly. For instance, certain regions in Daegu and Gyeongnam show 0% adoption, while Gyeongbuk has only 4%. In some cases, such as Donghae, the living wage is identical to the minimum wage, failing to provide the intended financial cushion for workers.

In Jecheon, labor unions and citizens are actively protesting the lack of a living wage ordinance. They highlight that the average monthly wage in Jecheon is significantly lower than the national average, and the city's non-regular worker ratio is approximately 47%. Protesters are demanding that the city enact an ordinance to ensure a social safety net that reflects actual living costs, including housing, education, and medical expenses.

Entities

Donghae · Jecheon · Korean Confederation of Trade Unions · National Institute of Local Finance