South Korea needs to raise the country's minimum wage for workers in phases, so as not to create heavy costs for businesses in a short period of time, according to Finance Minister Choi Kyung-hwan, reports yohapnews.co.kr. 

During a parliamentary audit session, Minister Choi stated: "I agree that the minimum wage should be raised in phases to an appropriate level.”

Mr Choi, who concurrently serves as Deputy Prime Minister for Economic Affairs, is concerned that a forceful hike in pay could end up hurting employment conditions and result in additional financial burdens to businesses in a very short period. 

"If a pay increase is enforced by law, it could have a negative impact of shrinking the total level of employment," he said. "There are worries out there that a failure in properly adjusting pay levels through smooth consultations between labour and management could cause the burden on businesses all at once." 

In August, a trilateral council of government, labour and management representatives agreed to raise the country's minimum wage by +7.1% to KRW 5,580 (USD 5.25) per hour next year. 

Critics, however, say that the amount is not enough to support the livelihoods of workers, many of whom are employed on part-time contracts.