Temporary Holiday Confirmed for August 17, Three-Day Holiday from Gwangbokjeol
Also to Boost Domestic Demand... Applies to Government Offices and Workplaces with 300+ Employees
Hyundai Research Institute: "Economic Impact of August 17 Temporary Holiday Estimated at 4.2 Trillion Won"
[Asia Economy Reporter Kim Suwan] The government has decided to designate August 17 as a temporary holiday, creating a golden holiday stretch of three days from Saturday, August 15, which is Liberation Day. However, this decision has sparked mixed reactions among office workers. Some welcome it, saying that the number of holidays was insufficient due to many legal holidays overlapping with weekends, while others express dissatisfaction, saying, "Our company cannot take a day off," as whether to take a holiday depends on the company's employment rules.
On the 21st, President Moon Jae-in presided over a Cabinet meeting at the Blue House, where he deliberated and approved over 20 presidential decrees and general agenda items, including the 'Proposal to Designate Temporary Holidays for Government Offices,' which designates August 17 as a temporary holiday.
In his opening remarks at the Cabinet meeting, President Moon stated, "We want to provide a short but precious rest time to the people exhausted by the prolonged COVID-19 pandemic," and explained the reason for designating the temporary holiday by saying, "We considered that the number of holidays available for rest decreased because Memorial Day and Liberation Day coincided with weekends."
This is intended to revitalize the domestic economy, which has been frozen due to the prolonged COVID-19 pandemic, and to relieve the fatigue of the public and medical staff. Accordingly, there will be a three-day holiday from August 15 to 17.
Especially this year, the need for a temporary holiday has been continuously raised because the legal holidays of June 6, Memorial Day, and August 15, Liberation Day, coincided with weekends, reducing the number of holidays.
The problem is that this regulation applies to public officials, schools, and public institutions. For private companies and self-employed individuals, it is only a recommendation, and there is no way to enforce it. The government cannot force private companies to implement the holiday after designating a temporary holiday.
If designated as a temporary holiday, workers in companies with 300 or more employees are guaranteed paid leave. The government designated temporary holidays and election days as paid holidays that private companies must guarantee through the 2018 revision of the Enforcement Decree of the Labor Standards Act.
This is implemented sequentially according to company size: companies with 300 or more employees in 2020, companies with 30 to less than 300 employees in 2021, and companies with 5 to less than 30 employees in 2022.
As a result, some office workers express feelings of deprivation, saying, "More companies cannot take a day off." Office worker A (28) said, "Our company does not have many employees, so we have no choice but to work even on temporary holidays. I feel unfair because I cannot receive these benefits from the government," and added, "I want to rest, but I cannot, so I even feel deprived."
On the other hand, there is also a welcoming atmosphere toward the designation of temporary holidays. Another office worker B (26) said, "I am very grateful for the government's decision," and added, "I was feeling fatigued because I couldn't rest these days, so I think it's fortunate to be able to rest even like this." He continued, "Even small and medium-sized enterprises often take a day off on temporary holidays. It seems to depend on the company's circumstances rather than the number of employees," and added, "If you cannot rest on that day due to the nature of the business, maybe you can use a substitute holiday."
Meanwhile, on the 20th, the Hyundai Research Institute released a report titled 'Current Issues and Tasks,' analyzing that if August 17 is designated as a temporary holiday, the total production inducement amount would reach 4.2 trillion won, and the number of jobs induced would be 36,000.
The institute estimated the economic ripple effect assuming that 25 million people, half of the total population, would rest on August 17.
Based on this, the institute explained that the total consumption expenditure for one day of a temporary holiday is about 2.1 trillion won, and through ripple effects, it induces production worth about 4.02 trillion won across the entire economy.
The institute stated, "In the unprecedented economic crisis caused by COVID-19, designating a temporary holiday to revitalize domestic demand is an important measure," and added, "To maximize the positive effects of the temporary holiday, a prompt decision on implementation is necessary to give households, companies, and other private entities enough time to plan."
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