The 1000 KRW kimbap that I enjoyed is 3000 KRW, and the 500 KRW chip is 1,500. 2000 KRW and 1000 KRW, may not seem like a big change, but it gives a big hit to ordinary people.

 

There are many reasons for rising prices, but the recent issue of 'minimum wage increase' is has been big news.

 

This year's minimum wage was set at 7,530 KRW, up 16.4% from last year's (6,470 KRW). The minimum wage is the highest ever and it was the largest single increase in over 17 years. The new government's commitment to raise the minimum wage to 10,000 KRW by 2020 has become a reality.

 

It is well known that the new government's goal of raising the minimum wage is good, but 'good intentions' don't necessarily bring 'good results'.

 

The minimum wage increase was a good idea, but there are many problems. Let's take a look at three big things.

1. Increased unemployment

2. Increased black market

3. Inflation

 

Due to the increase in the minimum wage, part-time workers, as well as temporary workers are being dismissed. The government said that the minimum wage increase would have little effect on the amount of employment, but it was a big wave.

 

This problem becomes even more serious if the minimum wage increase exceeds the amount that the employer can afford, and that is the case right now. It is too harsh for ordinary people to suffer the transition period to a new phase.

 

The second problem is also an extension of the first problem. The number of people working for less than the minimum wage in 2016 was up 13.6%, even though the minimum wage remained at about 5,000 KRW at that time. Increasing the minimum wage rate means that the number of workers who don't get the minimum wage has increased.

 

The black market is the most dangerous problem because it is part of the statistics. As the black market continues to grow, the rise in the minimum wage seems to have little impact on employment. However, the statistics are misleading.

 

The third problem is inflation, which has become a hot topic these days. The minimum wage increase (16.4%) is expected to bring inflation rates between 0.3% to 0.7%. The Bank of Korea predicts inflation will rise to 1.9% next year. It looks like a small number, but it causes a big wave in society.

 

It is the biggest difficulty for ordinary people because of rising prices of groceries and other necessities. Not only does the price of the product increase, but the quality of the service is also getting worse.

 

It is also the biggest problem to us as students. Predicting the worst, we will be fired from part-time jobs due to the minimum wage increase, and we will live in a world of price bombs. This problem is no longer the work of others. It is our situation.

 

There is certainly good points in the minimum wage increase, however, the width of the change shouldn't be sharp. Also we shouldn’t just watch this situation,; we need to think about the rapid raising of the minimum wage and the solution.

 

 

L.L.F. Editor-in-chief Eun-Young Kim

 

김은영  red7557@naver.com