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The number of people newly applying for unemployment benefits reached a record high during the first quarter of this year, government data showed Sunday, amid concerns over a sharp increase in the minimum wage causing employers to lay off workers.
The liberal Moon Jae-in administration raised the minimum wage by 16.4 percent to 7,530 won ($7.02) on Jan. 1 this year, the biggest jump in nearly two decades, while planning to increase the wage to 10,000 by 2020.
As many as 628,000 people got unemployment benefits, worth 1.49 trillion won ($1.39 billion) in total, during the first three months this year, up 6.9 percent, or 40,000 recipients, from a year earlier, the statistics from the state-run Korea Employment Information Service showed.