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Busan Metropolitan City Expands Coverage of Living Wage and Sets 2027 Living Wage at KRW 12,729 per Hour

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Busan Metropolitan City, led by Mayor Chun Jae-soo, announced that, following deliberations by the Busan Metropolitan City Living Wage Committee, it has finalized the City’s 2027 living wage at KRW 12,729 per hour.

The City finalized next year’s living wage at KRW 12,729 per hour following deliberation and approval by the Living Wage Committee, which comprises representatives from labor and management as well as experts.

This represents an increase of KRW 454, or 3.7 percent, from this year’s living wage of KRW 12,275. It is KRW 2,029 higher than the 2027 minimum wage of KRW 10,700 per hour, announced by the national government in August, and KRW 424,061 higher on a monthly basis, based on 209 prescribed working hours per month.

Living wage: A wage set above the minimum wage to enable workers to maintain a minimum standard of decent and culturally fulfilling life.

To promote wider adoption of the living wage in the private sector, the City will expand coverage beginning next year, 2027, to workers employed by contractors performing construction and service contracts for the City.

2026 coverage: Workers employed by Busan Metropolitan City, its affiliated public institutions, including subsidiaries, and private contractors performing City-commissioned services.

In addition to those covered this year—workers employed by Busan Metropolitan City and its affiliated public institutions, including subsidiaries, as well as workers performing City-commissioned services—the expanded coverage will include workers employed by contractors who perform City-related duties under construction and service contracts.

Since introducing the living wage in 2018, the City has gradually expanded its coverage. Prior to this latest expansion, it conducted in-depth discussions and consultations regarding both the need for the expansion and the workers to be covered.

In consideration of the voluntary participation required of the private sector under the system, the City also plans to develop a range of support measures to encourage broader adoption of the living wage.

Unlike the statutory minimum wage, the living wage is a recommendatory system without mandatory enforcement and therefore requires voluntary participation by the private sector.

The 2027 living wage will take effect on January 1 next year. In October, the City plans to announce the workers covered and the finalized wage rate on its website under Integrated Notices at www.busan.go.kr/nbnews.

Mayor Chun Jae-soo said, “I hope this expansion of living-wage coverage will lead to greater adoption of the living wage in the private sector, laying the foundation for more workers to enjoy stable livelihoods while local businesses grow alongside them.”

He added, “Busan Metropolitan City will do its utmost to build a city where the value of workers’ hard work and dedication is respected and where working citizens can lead happy lives.”