South Korea's ruling party and the government met today to gauge the impact of next year's minimum wage hike and other potential risks to the economy.
They also proposed a set of measures to improve the lives of the most vulnerable in society.
Kim Min-ji reports.
South Korea's ruling Democratic Party of Korea and the government are seeking a set of measures aimed at supporting people in the low-income bracket.
The meeting between the two sides, which took place Tuesday,... comes amid controversy over next year's almost eleven percent hike to the minimum wage.... on top of the 16 percent increase this year.
There are concerns that rather than helping the vulnerable,... the wage hike actually puts a burden on small businesses due to increased labor costs,... which has led to part-time workers losing their jobs.
"There have been disputes regarding the minimum wage hike, but there's no doubt it will create a sustainable society by increasing the incomes of the most vulnerable. The government needs to be at the forefront to win the understanding of labor circles, the self-employed and small business owners. It also needs to quickly come up with measures to help low-income earners."
The party and the government have agreed to do this by firstly,... expanding the number of people eligible for earned income tax credit -- a program that entails tax refunds for low-income households... as well as by raising financial support.
The two sides also agreed to increase the basic pension for elderly people in the lowest 20 percent bracket... to roughly 260 U.S. dollars a month by next year -- two years earlier than originally planned.
Also in the package are employment subsidies for young people entering the job market for the first time,... as well as job creation measures for senior citizens.
The government is expected to unveil a comprehensive plan on Wednesday.
"We'll expand the social safety net of those in the low-income bracket,... as well as carry out reforms so innovation can be seen across the economy. At the same time, we'll step up fiscal measures and take pre-emptive action against internal and external risks."
The two sides also said they will soon come up with follow-up measures regarding the minimum wage hike.
In the meantime, the ruling party also vowed all-out efforts to pass related bills,... while the government has promised to draw up policies that bring about tangible changes the people can feel.
Kim Min-ji, Arirang News.
