Small business owners in South Korea have vowed to respond to the drastic minimum wage hike.
They gathered in the capital on Wednesday demanding changes as their finances are being hit hard by the government move.
Kim Hyesung reports.
Even the heavy rain can't deter them.
More than 30-thousand people from about 150 different associations, including the Korea Federation of Micro Enterprise,... staged a protest in central Seoul.
"Small business owners and the self-employed from across the country gathered Tuesday in Gwanghwamun Square, demanding changes to the government's minimum wage hike."
The Moon Administration raised the minimum wage by over 16 percent this year, and has decided to raise it by another 10-point-nine percent next year, that would bring it to about seven-and-a-half U.S. dollars.
The protest came despite the government's announcement last week of support for small business owners hit by the wage hike, including a cut in credit card service charges and an increase in subsidies.
"The government's support measures are just a quick fix and are far from realistic. Regarding subsidies, only those who have insurance can apply, meaning only about a third of the self-employed can actually get them. This requirement should be changed."
According to the OECD, about 5-point-seven million, or one in five Koreans are self-employed.
Data from the Bank of Korea show loans to the self-employed in retail, wholesale, restaurants and lodging, hit 172 billlion dollars in the second quarter this year, marking the biggest on-quarter jump since 2008.
The number of jobs added in July also plunged to 5-thousand,... compared to a monthly average last year of 300-thousand.
"Sales haven't changed, but labor costs have shot up due to higher wages. Profits plunged about thirty percent compared to the same period last year. Raising the minimum wage to improve quality of life is good, but all that burden is on us, small business owners."
Protesters demanded changes such as applying different wage rates to different sectors... and detailed measures about how the government provides subsidies to small businesses with fewer than five people.
But the government has already laid out support measures, including more fiscal spending for the lower income bracket, so it remains to be seen whether those demands will be met.
Kim Hyesung, Arirang News.
