"If you lose the trust of your clients by failing to meet deadlines, that's the end."

"When the workload increases, I have to hire more people due to the limit on working hours, but I cannot expand my workforce because of labor cost burdens. There are concerns that corporate growth will stagnate rather than grow due to worsening labor shortages."

The "52-hour workweek system" has been applied to small and medium enterprises with 5 to 30 employees since the 1st, raising concerns in the small and medium business sector.

In a situation where there is a labor shortage, reducing working hours makes it even more difficult to meet deadlines for product deliveries, which could exacerbate management difficulties.

Workers are working in a small and medium-sized enterprise factory in Miryang, Gyeongnam. /Courtesy of Chosun DB

Until now, companies with fewer than 30 employees had received a two-year grace period regarding the 52-hour workweek system in 2023 and 2024. With the implementation of the additional 8-hour work regulation, they had been working up to 60 hours a week. However, with the grace period ending in 2024, companies with fewer than 30 employees also became subject to the 52-hour workweek system starting from the 1st.

The government has gradually applied the 52-hour workweek system based on the size of the corporations to address long working hours, noting that it provided ample time for adaptation during the two-year grace period for companies with 5 to 30 employees.

However, voices are arising in the small and medium enterprise field that adverse factors are compounding under the worst management conditions, including sluggish domestic demand, soaring minimum wage, and raw material prices, along with the reduction of working hours.

In particular, most small and medium enterprises with fewer than 30 employees are subcontractors supplying materials or parts to clients, making deadlines extremely important for company management. There are concerns that failure to meet these deadlines could damage trust with clients.

The representative of an automobile parts company based in Jeollabuk-do said, "When the quantity increases, we need to be able to respond flexibly, but the 52-hour regulation has made it more difficult," adding, "Especially when an employee quits, it's challenging to rehire." He continued, "If we fail to meet deadlines, trust with clients will be broken, and we could face significant difficulties in corporate management."

The representative of a foundry company in Chungcheongnam-do pointed out, "We will endure somehow, but the problem is the decline in corporate growth due to the 52-hour workweek system." He mentioned, "When the workload increases, I have to hire more people due to the limit on working hours, but considering the rising labor costs, I may not be able to increase the workforce, which means corporations cannot grow and will stagnate."

Workers in small and medium enterprises also react negatively to the 52-hour workweek system. For small and medium enterprises with fewer than 30 employees, wages remain at minimum wage levels, and employees have been seen trying to earn more by working overtime or special shifts. However, with the 52-hour system, it is no longer possible to work these extra hours, leading to a reduction in wages for workers in small and medium enterprises.

According to a survey conducted by the Korea Federation of Small and Medium Enterprises of 201 production workers in small manufacturing businesses in November last year, half (50.7%) responded that "working hours should be extended beyond 52 hours per week to increase salary income."

A representative of a small enterprise said, "If I work 60 hours a week, I can earn about 3 million won in mid-range, but if the working hours are reduced to 52 hours, my salary will drop by about 600,000 to 700,000 won," and added, "One of the main reasons for the labor shortage in small enterprises is low wages, and if this happens, labor shortages could worsen."

Choo Mun-gap, head of the economic policy department at the Korea Federation of Small and Medium Enterprises, stated, "The 52-hour workweek system is disconnected from the realities of small and medium enterprises." He said, "If there is an agreement between labor and management, additional 60 hours of work should be implemented, and at the same time, working hours should be flexibly adjusted on a quarterly or semi-annual basis to match periods of increased workload instead of on a weekly basis."

In this regard, a spokesperson from the Ministry of Employment and Labor noted, "Considering the circumstances of some corporations following the end of the grace period, we will provide an additional three-month correction opportunity if necessary until June."