“Continued management difficulties such as the root industry, it is necessary to apply a differential minimum wage”

Junghee Lee, Professor, Department of Economics, Chung-Ang University (Source=Edaily DB)

[이데일리 강경래 기자] “The management difficulties continue centering on small and medium-sized enterprises such as the root industry. Among small business owners, there are many business closures. This is why the minimum wage should be applied differentially.”

Chung-hee Lee, a professor of economics at Chung-Ang University, who served as the president of the Small and Medium Business Association, said on the 5th, “Small and medium-sized enterprises and small business owners are experiencing difficulties due to the prolonged COVID-19. “The minimum wage for next year should be raised to a lower level and applied differentially by industry and region,” he said.

Regarding the first plenary meeting of the Minimum Wage Committee on the same day, Professor Lee Jung-hee said, “Inflation has risen sharply recently. Wages usually have to take into account the inflation rate, and the labor community will strongly demand a minimum wage increase for this reason.” “However, prices rise in line with economic growth, but now it is a special situation where inflation occurs in a stagnant economy. . We need to take this into account,” he said.

In particular, he pointed out that raising the minimum wage could be fatal for small and medium-sized enterprises (SMEs) and small business owners. Professor Lee said, “Currently, we are in the process of compensating for losses for small business owners who are having difficulties with the prolonged COVID-19. This should also be taken into account.”

In particular, Professor Lee emphasized that the minimum wage differential by region and industry should be applied. “In the United States, there is a big difference in the minimum wage by region. In Korea, too, there are regional differences, so it is not appropriate to apply the same minimum wage from Seoul to Jeju Island.”

He continued, “Sectors belonging to the 4th industry and growing rapidly have high expected wages and usually pay more than the minimum wage. situation. In this regard, I think it is necessary to apply differential application by industry.”

In addition, he added, “There is a recent movement among SMEs and small business owners to expand unmanned systems, such as the introduction of kiosks.

Professor Lee thought that the minimum wage should be looked at together with the 52-hour workweek. He said, “The 52-hour workweek is a plan the government envisioned before the COVID-19 situation. Along with the minimum wage, the 52-hour workweek should also be reviewed.”

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