Youtube daily Follow Jul 17 2017

Korea has significantly hiked the minimum wage for next year.

The increase of more than 16 percent is the largest in more than 15 years.

Following the move,... the government unveiled measures to financially support small businesses...

as they'll have to cope with paying higher wages at a time when the economy isn't doing

that great.

This all comes as the National Assembly is edging closer to voting on a multi-billion

dollar extra budget bill aimed at creating thousands of new jobs.

Ji Myung-kil has more.

Korea's finance ministry revealed Sunday that the government has a contingency plan to relieve

the burden on small businesses following a decision to hike the country's minimum wage

to seven-thousand five-hundred-30 won or roughly six dollars 64 cents... up 16-point-four percent

from this year.

"The measures will minimize extra costs for companies, subsidize labor costs, foster companies

with solid growth potential and provide momentum for income-led growth."

The government estimates roughly three-and-a-half billion U.S. dollars will be spent to help

small businesses relieve the burden caused by the sharpest annual hike in the minimum

wage since 2001.

The government also said it would devise measures to give tax breaks to them, including lowering

credit card processing fees and value-added tax.

President Moon Jae-in has sought to sharply raise the minimum wage with the aim of addressing

income disparities and boosting economic growth through job creation and increased household

revenue.

However, business groups have expressed concern over a hike topping 16 percent,... saying

it could worsen business conditions and hamper job creation.

The minimum wage decision comes as the National Assembly's budget committee is fine-tuning

and accelerating its deliberations on a supplementary budget bill worth some ten billion U.S. dollars.

A long-delayed review of the extra budget began last Friday... when the opposition parties

lifted their boycott of parliamentary activities... a day after President Moon's controversial

pick for labor minister withdrew from consideration.

President Moon has been pushing for the additional budget to bankroll his plan to create jobs

largely concentrated in the public sector.

The extra budget bill is expected to be put up for a full floor vote on Tuesday.

Ji Myung-kil, Arirang News.