Busan sets 2027 living wage at 12,729 won per hour, widens coverage
In short
Busan city said it has set its 2027 living wage at 12,729 won per hour, a 3.7% increase (454 won) over this year's 12,275 won. From next year the wage will also apply to workers at companies carrying out city-ordered construction and service contracts. Yonhap reported that labour groups called the level far too low.
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Busan city said it has set its 2027 living wage at 12,729 won per hour, a decision it announced on 7 October. The figure is 454 won, or 3.7%, higher than this year's living wage of 12,275 won. Newsis, Yonhap and Kyunghyang Shinmun all reported the same hourly amount. [ 1 , 2 , 3 ]
The rate is 2,029 won above the 2027 minimum wage of 10,700 won that the government announced in August, according to Yonhap and Kyunghyang Shinmun. Converted to a monthly basis at 209 contractual hours, the city's living wage is 424,061 won higher than the minimum wage. A living wage is defined in the reports as one set above the minimum wage so that workers can maintain a minimal human and cultural standard of living. [ 2 , 3 ]
From next year the living wage will also cover workers employed by companies that carry out construction or service contracts ordered by the city, the two outlets reported. Until now the standard applied to the city, its affiliated public institutions including subsidiaries, and workers performing city private-consignment work. Busan has widened the coverage in stages since introducing the system in 2018, and Kyunghyang Shinmun reported the city plans support policies to encourage voluntary adoption in the purely private sector. The specific coverage and the amount will be formally announced this month and the 2027 rate takes effect on 1 January, according to Kyunghyang Shinmun and Yonhap. [ 2 , 3 ]
Kyunghyang Shinmun reported the rate was decided after review by a living wage committee composed of labour, management and expert members. Mayor Jeon Jae-soo said he expects the expansion of coverage to serve as a starting point for the adoption of a living wage in the private sector, and that more workers should be able to lead stable lives while local companies grow alongside them. Yonhap separately quoted him as hoping the broader coverage leads to private-sector adoption. [ 2 , 3 ]
The decision also drew criticism. In a follow-up published at 11:25, Yonhap reported that labour groups described the rate as far too low; no further detail of their position was available in the documents. [ 4 ]
Why it matters
The decision sets the pay floor for people working for Busan's municipal government and its contracted suppliers, extending a city-level wage standard into part of the private sector for the first time. The gap of 2,029 won an hour over the national minimum wage indicates how far the city chose to go beyond the statutory floor, a choice other local governments and employers may watch.
Key facts
- Busan set its 2027 living wage at 12,729 won per hour. [ 1 , 2 , 3 , 4 ]
- The figure is 454 won, or 3.7%, higher than this year's 12,275 won. [ 2 , 3 ]
- It is 2,029 won higher than the 2027 minimum wage of 10,700 won, equivalent to 424,061 won more a month based on 209 contractual hours. [ 2 , 3 ]
- From next year the living wage also covers workers at companies performing city-ordered construction or service work. [ 2 , 3 ]
- The 2027 living wage takes effect on 1 January. [ 2 , 3 ]
- Yonhap reported that labour groups described the level as far too low. [ 4 ]
Confirmed by several sources
- Busan city decided its 2027 living wage at 12,729 won per hour. [ 1 , 2 , 3 , 4 ]
- The 2027 rate is 454 won, or 3.7%, above the 2026 rate of 12,275 won. [ 2 , 3 ]
- The rate is 2,029 won above the 2027 minimum wage of 10,700 won announced by the government in August, or 424,061 won more per month on 209 contractual hours. [ 2 , 3 ]
- The living wage will from next year also apply to workers of companies carrying out city-ordered construction and service contracts, in addition to the city, its affiliated public institutions including subsidiaries, and city private-consignment workers. [ 2 , 3 ]
- The 2027 living wage applies from 1 January. [ 2 , 3 ]
Still unclear
- Labour groups' criticism that the rate is far too low This appears only in the headline of a Yonhap follow-up; the available summary gives no figures, named representatives or reasoning behind the criticism.
- How many workers the expanded coverage will affect None of the documents give a number or estimate of affected workers.
- The deliberation that produced the decision Only Kyunghyang states that a living wage committee of labour, management and expert members reviewed the rate; no vote, membership or dissenting view is reported.
- The date of the formal notice Only Kyunghyang says the specific coverage and amount will be announced this month; the other documents give no notice date.
What local media are saying
Timeline, local time
- Newsis publishes a report that Busan's 2027 living wage is set at 12,729 won per hour. [ 1 ]
- Yonhap reports Busan decided the 2027 living wage at 12,729 won per hour, a 3.7% increase, and lists the new coverage. [ 2 ]
- Kyunghyang Shinmun reports the committee review behind the rate and the expansion to city-contracted construction and service workers. [ 3 ]
- Yonhap publishes a follow-up in which labour groups call the level far too low. [ 4 ]