# Minimum Wage: Definitions, Determination, and Comparative Analysis

## Introduction

The concept of minimum wage refers to the lowest hourly, daily, or monthly remuneration that employers are legally required to pay to workers. The implementation and amount of the minimum wage differ significantly around the world and are often subject to the economic conditions, cost of living, and governmental policies of individual countries. This document explores how the minimum wage is defined and determined in two different jurisdictions: the United States of America, which is represented by Answer A, and South Korea, which is represented by Answer B.

## United States of America

### Federal Minimum Wage
In the United States, the federal minimum wage was established by the Fair Labor Standards Act of 1938. The current federal minimum wage is $7.25 per hour, a rate that has been in effect since July 24, 2009. This rate is the absolute minimum that any state in the U.S. can offer, though many states, cities, and counties have set higher local minimum wages.

#### Determination Factors
The federal minimum wage in the U.S. is determined by Congress and is subject to change through new federal legislation. Historically, the factors influencing adjustments in the minimum wage include inflation, living costs, and prevailing wage rates in the country. Political and economic conditions also play significant roles in shaping decisions about the minimum wage.

### Different State Laws
Since different states can set their own minimum wages provided they are higher than the federal rate, there is significant variability across the country. For instance, as of 2021, California has one of the highest state minimum wages in the country. State-level changes are often influenced by cost-of-living differences, the local economic environment, and political leadership.

## South Korea

### Minimum Wage Determination
South Korea's minimum wage is determined by the Minimum Wage Committee. This committee is a tripartite body consisting of representatives from labor, management, and the public interest. The process for setting the minimum wage is quite structured and involves annual reviews, comprehensive economic analyses, and public consultations.

#### Annual Review Process
The procedure for setting the minimum wage in South Korea begins with a request from the Minister of Employment and Labor to the Minimum Wage Committee, which must be made by March 31 each year. Following this request, the committee analyzes a variety of economic factors, including inflation rates, living costs, average wages, and national economic health, to make its decision. The final minimum wage rate for the next year is typically announced by August 5 and implemented starting January 1 of the following year. As of the latest update, the minimum wage in South Korea is set at 9,860 won per hour.

### Economic and Social Impact
The determination of the minimum wage in South Korea considers the need to balance living standards, employment rates, and the overall competitiveness of the economy. The diverse makeup of the Minimum Wage Committee ensures that the interests of workers, employers, and the broader economic health are all considered in the decision-making process.

## Comparative Analysis

### Philosophy and Approach
The U.S. and South Korea differ significantly in their approaches to setting the minimum wage. While the U.S. sets a universal federal minimum wage that states can exceed, South Korea uses a more dynamic annual review process that can adjust wages in response to economic changes more frequently.

### Economic Context
Both countries utilize their minimum wage policies as tools for economic and social policy. In the U.S., individual states tailor the minimum wage to local economic conditions, which reflects the country’s larger emphasis on a decentralized federal structure. Conversely, South Korea’s centralized review process illustrates a unified national strategy toward wage standards.

### Challenges and Debates
Both systems face challenges and criticism. In the U.S., debates often focus on the adequacy of the federal minimum wage in the face of inflation and regional cost of living variations. In South Korea, discussions frequently revolve around the impact of wage increases on small businesses and the country's competitive edge in the global market.

## Conclusion

Minimum wage laws play a crucial role in ensuring a baseline standard of living for workers while balancing economic factors critical to a country's overall health. The systems in place in the U.S. and South Korea provide interesting contrasts in legislative approaches and methodologies in economic management. By examining these differences and similarities, one can appreciate how deeply economic policies are intertwined with cultural, economic, and political elements.