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The Korea Federation of Small Businesses announced on the 16th that it will urge reconsideration when submitting an objection to the "2027 minimum wage plan" (KRW 10,700 per hour) announced by the government to the Ministry of Employment and Labor on the 24th. It is the first time in four years that the association has submitted an objection since 2022.

In a press conference prior to the submission, Song Ki-young, chairman of the Korea Federation of Small Businesses, said, "It is an increase of about 79,000 won per month and 950,000 won per year, and four-person workplaces will incur an additional burden of more than 10 million won per year, including the four major insurance burdens," adding, "The increase is a serious decision to accelerate the reduction of employment from small business owners amid the double whammy of declining profits and sluggish economy."

In its objection, the association criticized next year's minimum wage plan as a decision that did not take into account small business owners who lost their ability to pay, but ignored the difference in ability to pay by industry. It also said that the decision turned a blind eye to objective data and actual conditions in the field, including a decline in employment quality, such as a surge in ultra-short work, and a polarization of the rate below the minimum wage among industries.

The total loan balance of self-employed people hit a record high of 1092.9 trillion won as of the end of last year, while the delinquency rate of vulnerable borrowers nearly tripled in just four years to 12.14 percent at the end of 2025 from 4.36 percent at the end of 2021, according to data from the Bank of Korea presented by the Federation of Small Business.

In addition, according to the National Tax Service's national tax statistics, the total closure rate of businesses in 2025 was 8.64%, but 751,264 out of 6,031,483 small businesses, including retail and food, closed their businesses, recording an 11.08% closure rate.

In response, the association strongly urged the government and the National Assembly to come up with effective management stability measures, such as ▲ strengthening the representation of the highest-ranking small business owners ▲ determining the minimum wage every other year and applying the classification by industry ▲ reviving job security funds.

Earlier, on July 11, 2022, the association submitted an objection to the "2023 Minimum Wage Plan" to the Ministry of Employment and Labor. At that time, the Minimum Wage Committee voted for the minimum wage in 2023 to 9,620 won, which is 460 won (5.0%) higher than the previous year (9,160 won).

Chairman Song said, "Four out of 10 small business owners have less than 2 million won in monthly operating profit, so they can't even take the monthly conversion of the minimum wage (2.236,300 won)," adding, "In order to protect the survival rights of small business owners at the end of the cliff and prevent the employment crisis caused by small business owners, it is essential to reconsider the minimum wage plan applied in 2027."

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