Finance Minister Kim Dong-yeon has vowed to increase the amount of tax refunds for low-income households and expand the beneficiaries as part of efforts to cope with the possible side effects of the minimum wage hike. 

Kim made the vow on Tuesday during a meeting with officials from the ruling Democratic Party to discuss ways to support low-income families and review economic conditions in the second half.

The minister said that the government will "sharply expand" the beneficiaries of the earned income tax credit scheme, which offers tax refunds to low-income families, as well as increase the volume of financial support. 

Kim also said the government will increase jobs for senior citizens and provide related support by creating emergency funds in the second half, if necessary. 

He added that the government will work to increase basic pensions for the elderly at an earlier date and reduce credit card fees for small merchants. 

The meeting comes amid strong protests from both business and labor circles following the government's decision to hike the minimum wage by ten-point-nine percent to eight-thousand-350 won per hour next year.