South Korea to raise minimum wage by 5% next year

South Korea said on Thursday the Minimum Wage Commission agreed on an minimum hourly wage increase of 5% to 9,620 won ($7.39) for next year, in its first such decision since President Yoon Suk-yeol took office in May.

The pay hike will affect up to 3.4 million South Korean workers, the commission said, adding it put the country's growth, inflation and employment outlook into consideration when deciding it.

Former labour-friendly President Moon Jae-in had raised the minimum wage by 16.4% in July 2017 in his first year of presidency, while the country saw a combined 41.6% hike in the hourly minimum wage during his five-year term. ($1 = 1,301.9000 won)