The minimum wage for next year was set at 9,160 won per hour. As a result, President Moon Jae-in's "promise of a minimum wage of 10,000 won" could not be achieved within his tenure.
The Minimum Wage Committee, an organization that deliberates and decides on the minimum wage, held the 9th plenary meeting at the Government Complex Sejong on July 12 and decided to raise the minimum wage by 440 won (5.1%) from this year's (8720 won) to 9,160 won. said he did In terms of salary, it is 1914,440 won when working 209 hours a month, including paid weeks off, based on 40 hours a week, which is 91,960 won higher than this year.
Under the current administration, the minimum wage increase rate was 16.4% in 2018 and 10.9% in 2019 based on the year of application, which was double-digit for two years in a row, but fell to 2.9% last year and fell to 1.5%, the lowest level ever recorded this year. As for the reason why the increase rate for next year (5.04%) was decided higher than last year, the committee explained, "It actively reflects the prospect of economic recovery after the novel coronavirus infection (COVID-19)."
The rate of increase is the sum of the averages of this year's economic growth rate and consumer price inflation forecasts announced by the Ministry of Strategy and Finance, the Bank of Korea, and the Korea Development Institute (KDI), and then subtracting the average of the projected employment growth rates. The Bank of Korea's economic growth forecast for this year is 4.0%. The employment index is also showing signs of recovery, with the increase in the number of employed people exceeding 600,000 for two consecutive months since April.
The Ministry of Labor must announce next year's minimum wage by August 5. If the minimum wage is announced, it will take effect on January 1 of next year. The number of workers affected by the minimum wage increase is estimated to range from a minimum of 768,000 to a maximum of 3555,000 (influence rate of 4.7 to 17.4%).
Riders of a delivery agency deliver food in an alley in Jongno gu, Seoul on the 12th, the first day of social distancing in the metropolitan area.
Hashtag Economic Terms: QConomy
Q-Conomy is a new word that combines the English word ‘Q’ for ‘Quarantine’ and ‘Economy’.
In fact, the world has implemented ‘social distancing’ such as limiting going out to prevent infection with COVID-19, and as a result, there has been a big change in the spread of untact (non-contact, non-face-to-face) culture in each field of society. Distance education, telecommuting, and hiring new companies through video interviews are all familiar to us now.
Online shopping, which is also conducted through non-face-to-face shopping, is on the rise. As the time spent at home increases, the number of food delivery orders and grocery deliveries has also increased significantly. According to the online shopping trend of the National Statistical Office, the amount of online shopping transactions in May increased by 26.0% (3.311 trillion won) from the same month of last year, to 16.59 trillion won. Food service transactions such as delivery applications increased 62.2% (821 billion won) from last year to 2.14 trillion won, while food delivery increased 39.1% (7472 billion won) to 2.66 trillion won. Only the increased transaction amount (1.568 trillion won) in the two fields accounted for 47.4% of the increase in May transaction amount.
Non-face-to-face and non-contact culture also affected sports and performance culture. As professional baseball and professional soccer were played without spectators, the term ‘gwan-gwan (watching at home)’ was often used. In addition, as art performances and concerts are relayed online through YouTube, not in concert halls, a new cultural consumption method is emerging.
