South Korea's state-run economic institute is sounding the alarm about the government's rush to raise the minimum wage.<br />The Korea Development Institute says,... if the current rate of increase continues,... it'll mean more job losses and fewer hours for those still in work.<br />Choi Si-young reports. <br /> The Korea Development Institute has warned that increases in the minimum wage due to take effect in 2019 and 2020 could result in job losses.<br />The think tank projects that a 15% wage increase over the next two years could potentially lead to the loss of nearly 100-thousand jobs in 2019... and 140-thousand the following year.<br />Those wage increases would come on top of the Moon administration's 16-percent hike enacted this year, which brought the minimum up from about 6 U.S. dollars an hour to 7.<br /><br /> The institute highlighted similar difficulties in France,... which stopped raising its minimum wage in 2005 once it had reached 60% of the median wage... because higher pay made it harder for low-wage earners to find employment.<br />Korea's minimum wage in 2018 is already at 55% of the median. <br /><br /> The report conceded that its estimates are based on the case of another foreign country, Hungary, where the wages were increased by 60% between 2000 and 2004.<br />It also said it did not factor in government support for small businesses, which are usually hit hardest by higher minimum wages.<br /><br />The KDI's report comes after the Blue House released figures that said the effects of the minimum wage hike were 90% positive.<br />However, the top office has come under fire for having made that calculation based on individual income, rather than household income, and for excluding figures for the unemployed and the self-employed.<br /><br /> The Korea Development Institute stressed that the minimum wage increase has so far had few side effects.<br />But, it warns that the government should monitor the effects of increases closely over the coming years.<br />Choi Si-young, Arirang News. <br />
