South Korea's textile workers will receive a 7.6 per cent rise in their base pay this year compared to an 8.2 per cent hike last year after industry and union chiefs struck a deal following months of talks.

Officials said the rise is below last year’s level due to the widespread difficulties the industry is facing amid fierce competition from rival textile and garment-producing nations across Asia.

According to the collective bargaining agreement, 12 out of the 20 member companies of the Spinners & Weavers Association of Korea are to retroactively apply the new wage hike to salaries from this March.

The deal comes after several rounds of negotiations as union chiefs originally asked for a 13.2 per cent rise while bosses only offered 2.5 per cent.