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The nation's two umbrella labor groups, the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU), yesterday submitted a joint proposal to the Minimum Wage Deliberation Committee demanding that the minimum wage be raised to 611,616 won ($540) per month, or 2,706 won ($2.39) per hour.

Officials from the two groups said the proposed increase, which would boost the minimum wage to about 50 percent of this year's estimated average salary for full-time Korean workers, is necessary to guarantee an acceptable standard of living for low-income workers.

The minimum wage is currently 335,610 won ($296) per hour, or 1,600 won per hour, which accounts for about 30 percent of the average full-time salary.

The unions have described the existing minimum wage policy as being "good for no one," since it benefits a mere 53,760 workers or 1.1 percent of the total workforce.

The minimum wage is among the lowest in the world and is even lower than that in countries whose economies lag behind Korea's, such as Hungary, Portugal and Mexico.

The proposed hike would raise the proportion of beneficiaries to 11 percent of the workforce and help narrow wage differences. Experts argue that the recent economic recession only widened the gap between rich and poor, officials said.

The Minimum Wage Deliberation Committee is expected to come up with a revised minimum wage by the end of June, which would remain in effect for one year starting this September.

Meanwhile, their minimum stand marked the first time that the rival umbrella labor groups have stood united for a policy change.

The two groups hinted that they may join forces in the near future on other issues, such as the proposed introduction of a five-day workweek.