South Korea's Minimum Wage Commission set the hourly minimum wage for 2027 at 10,700 won [1].
The decision establishes the baseline cost of labor for the coming year, balancing the needs of low-wage workers against the operational costs of small businesses.
The new rate represents a 3.7% increase, or 380 won, over the 2026 hourly rate [3]. The government announcement on July 15, 2026, followed a period of deliberation where the Labor Ministry rejected objections from both labor unions and small-business groups [2, 4].
In U.S. dollar terms, the 10,700 won rate is estimated between $7.18 and $7.5 per hour [1, 5]. Variations in these conversions reflect different reporting sources, with some citing $7.19 per hour [6].
The Minimum Wage Commission is tasked with determining the annual rate to ensure a basic standard of living for workers while considering the economic health of employers [2, 3]. The 380 won increase marks a continued upward trend in the national wage floor, though the pace of growth remains a point of contention between stakeholders.
Because the Labor Ministry dismissed the appeals from competing interest groups, the 10,700 won figure is now finalized for implementation in 2027 [2, 4].
“The 2027 hourly minimum wage will be 10,700 won”
This wage hike reflects the South Korean government's attempt to mitigate inflation and rising living costs without triggering widespread closures of small enterprises. By rejecting appeals from both sides, the commission has opted for a middle-ground increase that avoids the volatility of more aggressive demands from labor unions while still providing a modest raise for the workforce.
