Next year's minimum wage is confirmed at 1ten thousand won, and local tax systems will also be revised.700
The government has decided on next year's minimum wage at an hourly rate of 1ten thousand won (an increase rate of 700%). On the same day, plans to expand income tax reductions for workers in local small and medium enterprises under the 'Local Preferential Tax System' and to accumulate additional tax revenues from semiconductors through the 'Future Response Fund' were announced.3.7 3
/blog-images/gen-1034ee7e-8ae2-499c-b658-1606c56c6a12.jpg
Next year's minimum wage has been set at an hourly rate of 1ten thousand won. This increase rate is 700%.3.7
Small and medium enterprises and small business associations have expressed regret over this decision. The groups stated that the payment capacity of the businesses should be taken into account.
In the discussions about the minimum wage, labor representatives demanded 1ten thousand won, while the employer side proposed 1,250ten thousand won. The gap in demands between labor and management is reported to be 1won.520 730
The government has decided to introduce a 'local preferential tax system' that expands income tax reduction benefits for workers employed in small and medium-sized enterprises in provincial areas.3The targets and reduction rates will be finalized through relevant laws and enforcement decrees.
The additional tax revenue anticipated from the semiconductor industry will be deposited into the 'Future Response Fund.' The Korea Investment Corporation (KIC), a sovereign wealth fund, will be restructured into a comprehensive format.
These announcements were made as part of the government's second-half growth strategy presentation on 2026 7 14. The specifics of implementation time and targets will be announced later.
There remain agreements on labor-management, detailed tax regulations, and fund management rules. Companies and investors should check related announcements.