As Kim Young-hoon, the nominee for Minister of Employment and Labor, expressed his intention to implement a 4.5-day workweek, concerns have emerged from the business sector. If working hours are reduced, it becomes difficult to maintain productivity, and the expense burdens increase due to additional hiring and extended work hours. Many expect that small and medium-sized enterprises with poor financial conditions and industries that require 24-hour operations will be more severely impacted than large corporations.
During a meeting with reporters on the 24th, the nominee Kim said, "The 4.5-day workweek is a path we must take," adding that "reducing working hours is a key means to overcoming the crises posed by digital transformation, low birth rates, and aging population—changes that are facing us."
The 4.5-day workweek is considered a core labor-related pledge of President Lee Jae-myung, along with amendments to Articles 2 and 3 of the Labor Union and Labor Relations Adjustment Act, known as the 'yellow envelope law', and the extension of retirement age. The Korea Enterprises Federation (KEF) has stated that with labor productivity lower than that of advanced countries, simply reducing the legal working hours could lead to a decline in corporate competitiveness.
The most concerning aspect of the introduction of the 4.5-day workweek for corporations and economic organizations is labor costs. If working hours are reduced, companies must either hire additional staff to maintain productivity or pay overtime to existing employees.
The business sector anticipates that labor cost burdens will significantly increase for small enterprises and industries that require 24-hour operations.
In the automobile industry, Hyundai Motor, for example, has a systematic production system that allows it to implement a reduction in working days without difficulty. The Hyundai factory operates in a two-shift system, with the first shift working from 6:45 a.m. to 3:30 p.m. and the second shift from 3:30 p.m. to 12:10 a.m. the next day. Depending on product demand, operations at some factories may be suspended. Even with the introduction of a 4.5-day workweek, working hours and processes for production workers can be adjusted flexibly.
In contrast, most component suppliers have tightly organized processes based on delivery schedules, with many having longer working hours than Hyundai Motor. Therefore, if a 4.5-day workweek is introduced, they will have to hire additional production workers or provide extra pay to employees who work overtime. Additionally, with poorer financial conditions compared to large corporations, they face significant challenges in adjusting factory facilities to align with the new working hours.
Corporations that need to operate 24-hour factories or research and development (R&D) facilities are also expected to face difficulties. Industries frequently mentioned include steel, semiconductors, IT, and healthcare. Semiconductor manufacturers like Samsung Electronics and SK hynix have requested the government and political circles to exempt them from the application of the 52-hour workweek, citing difficulties in concentrating R&D capabilities and frequent delivery delays.
Low labor productivity compared to overseas is also cited as a problem. According to the Organization for Economic Cooperation and Development (OECD), as of 2023, South Korea's hourly labor productivity stood at $44.4, ranking 33rd among the 38 member countries. The KEF pointed out that with labor productivity significantly lower than that of advanced countries such as the United States ($77.9) and Germany ($68.1), it would be difficult for corporations to maintain competitiveness if the number of working days is also reduced.
Shin Sang-hee, the representative of Gaia3D, a small domestic software development company, shared on his social media (SNS) the difficulties he experienced after implementing a 4.5-day workweek without wage cuts for about a year since 2023.
Shin noted, "The culture of taking a half day off on Fridays and skipping the whole day has begun to spread. Over the course of a year, 40 weeks equate to a 4-day workweek," adding, "If someone is absent for 0.5 days while overall productivity does not improve, others had to fill in the gaps. Ultimately, the more responsible and dedicated employees became the victims of this system."
Some large corporations that previously implemented the 4.5-day workweek have recently partially returned to a 5-day workweek. POSCO introduced a work arrangement of working 4 days every other week for the first time in the steel industry last year, but after continuing to struggle with poor performance and facing several safety accidents, it shifted back to a 5-day workweek for team leaders this year after doing so for executives at the end of last year.