Arya News - Liberal frontrunner Lee Jae-myung pledges shorter workweek, stirring anxiety among businesses.
SEOUL – A bold proposal for a 4.5-day workweek is shaking up the campaign trail as South Korea heads toward an early presidential election on June 3.
The pledge is drawing praise from labor advocates and pushback from business sectors, while questions linger over whether such reform is feasible in a country known for some of the longest working hours in the world.
Both the liberal Democratic Party of Korea and the conservative People Power Party have offered versions of a shorter workweek in their campaign platform in an effort to win over voters seeking better work-life balance.
Lee Jae-myung, the Democratic Party candidate who is leading polls by a large margin, proposes reducing the total work hours from 40 to 36 hours a week, without a pay cut. Aiming to bring Korea’s average annual working hours below the OECD average of 1,742 hours by 2030, Lee’s party is ultimately aiming for a 4-day workweek. The current figure for Korea stands at 1,874 hours a year as of 2023.
“We must boldly shift our policies to achieve a sustainable work-life balance,” said Lee in a post on his Facebook on April 30. “We will reduce South Korea’s average working hours to below the OECD average by 2030. To achieve this, active participation from businesses is essential. We will create clear support measures for companies that adopt the 4.5-day workweek. In the long term, we must move toward a four-day workweek.”
The People Power Party’s solution is quite different. Maintaining the total work hours at the current level of 40 hours, employees would work an extra hour Monday through Thursday on top of the usual eight hours, to get a half day off on Friday. Though the total working hours remain the same, the changes could allow for a flexible working schedule.
But People Power Party candidate Kim Moon-soo’s stance marks a slight departure from his party’s official position, arguing the issue should be left to the discretion of individual businesses rather than mandated by law.
“Under the 4.5-day workweek, one hour is extended each day, so the total working hours remain the same,” Kim told reporters on April 15, after meeting with Sohn Kyung-shik, chair of the Korea Enterprises Federation. “Rather than applying it uniformly to all companies through legislation, it should be left to corporations to decide freely. Since the 4.5-day workweek doesn’t reduce the total working hours, (if it’s implemented) some companies could find it inconvenient.”
Business sector on edge
The business community has expressed deep concerns about the Democratic Party’s 4.5-day workweek proposal. They warned that reducing work hours without a corresponding productivity boost could hurt companies already grappling with rising labor costs and an uncertain economic landscape.
“Given that South Korea’s labor productivity remains low and small and medium-sized companies are struggling to secure sufficient manpower, reducing legal working hours without addressing these issues is concerning,” said an official at one of the business lobby groups. “Rather than imposing uniform reductions in working hours, discussion should focus more on flexible working arrangements that enhance productivity.”
The heads of the country’s five major business lobby groups, including Korea Chamber of Commerce and Industry, Korea Enterprises Federation, Federation of Korean Industries, Korea International Trade Association and Federation of Middle Market Enterprises of Korea, met with liberal frontrunner Lee, last week to deliver policy recommendation from the business community, and express concerns on the proposal for a 4.5-day workweek.
“There are concerns that implementing a 4.5-day workweek could undermine corporate competitiveness and deepen the divide between large and small businesses,” Sohn said at the meeting. “We request that any discussion on reducing the statutory working hours to 4.5 days will be approached in a way that respects the autonomy of labor and management.”
To allay concerns, Lee said that matters like a 4-5-day workweek won’t be “enforced unilaterally” but will be done through “dialogue, preparation and a phased approach” considering differences across the sectors.
“It won’t happen all-of-sudden like declaring martial law,” Lee said, in reference to former President Yoon Suk Yeol, who was impeached after making such a declaration. “We will have sufficient public dialogue.”
Despite efforts for reassurances, many in the business sector remain wary. Particularly, concerns are growing that small and medium-sized businesses and subcontractors are expected to bear the brunt.
“The current 52-hour workweek scheme is already squeezing our workflow,” said an official at a mid-sized manufacturing company on condition of anonymity. But if the working hours are further reduced, meeting the deadline will become even tougher.”
According to the Korea Federation of SMEs, 42.4 percent of SMEs said they are struggling with the current 52-hour workweek system. Among reasons, 39.6 percent identified labor shortages as challenges, followed by 32.3 percent who cited difficulties with flexible scheduling due to unpredictable orders, and 20 percent who pointed to increased labor costs from additional hiring.
Government subsidy, flexibility key to 4.5-workweek
Meanwhile, labor unions have welcomed the Democratic Party’s proposal. The two main umbrella trade unions, the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions, endorsed the 4.5-workweek policy.
Supporters of the policy point to examples in large conglomerates and public institutions that already operate flexible working hour programs, allowing employees to take Friday off or work half-days once weekly requirements are met.
Companies such as SK Telecom and POSCO allow employees to take Friday off every two weeks if they fulfill the weekly work hours, while Samsung Electronics allows one Friday off a month under a similar program.
Some provincial governments have also implemented similar policies. In Jeongseon, Gangwon Province, a biweekly 4.5-day workweek system has been in place since last year. Gyeonggi Province has launched a 4.5-day workweek program, providing subsidies to 83 selected companies to choose options from a biweekly four-day week, a 35-hour workweek, or a half-day every Friday.
The Gyeonggi program offers a practical blueprint for future implementation, providing companies with essential support and funding, according to Kim Jong-jin, director of Korea Worker Institute and Union Center.
Kim said that the previous transition from a six-day to a five-day workweek took four years after it was first proposed under former President Kim Dae-jung in 2000, and was enacted during the next Roh Moo-hyun administration.
“Actual legal transition will likely take four to five years, so for now, pilot programs could be a feasible option,” he said.
Kim explained that about half of the 83 participating companies in the Gyeonggi program had under 40 employees.
“It was the owners who voluntarily applied for the program to attract and retain talent by providing a better working environment for their employees,” said Kim. “While many large companies could afford to adopt reduced-hour models, small companies can’t do it without incentives from the government, such as through subsidies and tax credits.”
Flexibility that allows companies to choose workable dates that meet their industry characteristics is also critical.
“The government should promote flexible hours through labor-management talks, tailored to each sector, rather than push for legislation,” said an industry official.