Fast food chains have begun to increase their prices due to the minimum wage increase, saying they have no choice due to the increasing cost of labor.
KFC Korea increased prices on its menus by up to KRW 800 (USD 0.76). Lotteria also increased its major products such as Bulgogi and Shrimp burgers by 5.9%. McDonald’s Korea decided to increase the cost of its delivery service from KRW 8,000 (USD 7.55) to KRW 10,000 (USD 9.44).
For 2018, the minimum wage has been set at KRW 7,530 (USD 7.03) per hour, representing a 16.4% increase over 2017. If a worker works for an average of 209 hours/month, the minimum monthly wage is now KRW 1,573,770 (USD 1,468.75), representing an additional burden on business owners. Net revenues are expected to decrease 10% due to the minimum wage increase.