DR & AJU Legislation & Government Relations Consulting Center's latest issue of its specialized legislative journal, the Policy & Business Report, is now available in digital format.
Korean Government rethinks work hour reform after fierce opposition to maximum 69-hour work week… A long way to go until Legislation.
The government and the ruling conservative party (“PPP“) have decided to make amendments to the maximum 69-hour work week proposal, which aims to allow flexible working hours, making it unclear as to what will happen to the reform of the current 52-hour work system. The Ministry of Employment and Labor (“MOEL”) has announced that it will consider all possibilities while re-reviewing the reform proposal, but many view the reform to be implausible.
Previously, the MOEL announced a proposal for the renewal of the maximum 52-hour work system and preannounced the amendment to the Labor Standards Act on March 6. The reform allows for labor and management to flexibly agree on whether the extended work hours will be managed on a weekly, monthly, quarterly, half-yearly, or yearly basis. It also makes changes to the adjustment period of the selective work hours system in which workers can freely adjust their work hours from one month (three months for R&D) to three months (six months for R&D). The amendment also limits work hours to a weekly average of 64 hours in accordance with standards to prevent industrial accidents caused by overworking. Furthermore, workers may work a weekly maximum of 69 hours only if 11 hours of consecutive rest are guaranteed between shifts. Despite these safeguards, the proposal has been received coldly by workers.
According to a national barometer survey (NBS) conducted from January 9 to 11, 2023, by public opinion research agencies Embrain Public, K Stat Research, Korea Research International Inc. (KRi), and Hankook Research, 45% out of 1008 adults agreed to the work-hour reform and 48% disagreed. The younger age groups responded more negatively to this reform compared to the other groups. 39% of adults aged 18–29 agreed with the reform, while 57% disagreed, and 34% of adults aged 30–49 agreed with the reform, while 60% disagreed. In response to the hostile public opinion, President Yoon expressed that “working beyond 60 hours is excessive even if extended work hours are included,” and ordered revisions to the proposal. Considering the fact that President Yoon mentioned a specific number, it would appear that the initially proposed maximum work hour limit of 69 hours will be amended to 59 hours or below. President Yoon’s order to amend the proposal has alarmed business circles, who are expressing concern that the purpose of the reform, which is to make the current rigid labor system more flexible, may be lost in these unsettling developments.
Meanwhile, regarding the work hour system reform, the government and the PPP are preparing appropriate measures to guarantee workers their right of choice, health, and rest. To achieve this, the government plans on listening to the opinions of the younger people, so-called “generation MZ”, non-union workers, SME workers, and other workers in the field. It will also conduct public opinion surveys on the work hour system reform.
On the other hand, the Democratic Party of Korea (“DPK”) proposed the 4.5-day work week in opposition to the government’s work hour system reform. The DKP will be holding a forum on March 29 with participants from labor and academic circles to discuss the 4.5-day work week system before proposing a bill. The DPK is also considering an incentive system for companies that switch to a 4.5-day work week and other measures to reduce legal work-hours per week. Last year, lawmaker Hoon Sik KANG of the DPK proposed an amendment to the Labor Standards Act that reduced the current legal weekly working hours of 40 hours to 36 hours and set the cap to 48 hours. The existing law regulates the standard weekly hours of work to 40 hours and allows up to 12 hours of extended work, setting the threshold to a total of 52 hours.
Although President Yoon has ordered for working hours to be brought down to not exceeding 60 hours, it’s unclear as to whether the working hour system reform can be implemented despite such revisions. It is highly unlikely that the DPK will cooperate in passing the Labor Standards Act amendment bill while public sentiments are at rock bottom. The political battle between the ruling and opposition parties over the working hour reform is expected to continue for the time being.
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. The March 2023 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from February 15, 2022, to March 14, 2023, and selected and analyzed legislation with a significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.
*DR & AJU Legislation & Government Relations Consulting Center provides P&B Report subscription service. Please contact us at Ic@draju.com for further inquiries.
