SME Sector "Reality Makes It Impossible to Comply with 52-Hour Workweek... Regret Government's Enforcement"

Korea Federation of SMEs Expresses Regret Over Government Announcement on 16th
"Companies with Fewer Than 50 Employees Lack Capacity... Labor Shortage"
"Request for Grace Period Until Post-COVID Normalization"

Kim Ki-moon, President of the Korea Federation of Small and Medium Business.

[Asia Economy Reporter Kim Bo-kyung] The small and medium-sized enterprises (SME) sector has expressed strong concerns and regrets over the government's announcement to enforce the 52-hour workweek system.

The Korea Federation of SMEs issued a statement on the 16th in response to the Ministry of Employment and Labor's announcement that the 52-hour workweek system will be implemented for companies with fewer than 50 employees starting next month without any grace period.

The Federation stated, "The SME sector expresses strong concerns and regrets regarding the government's announcement," adding, "The reality is that many companies with fewer than 50 employees simply cannot comply with the 52-hour workweek system even if they want to."

They continued, "Since the beginning of last year, companies have been overwhelmed with responding to the COVID-19 pandemic and have had no capacity to prepare for work system reforms necessary to introduce the 52-hour workweek."

Furthermore, they said, "Due to COVID-19, even foreign workers have been unable to enter the country since last year," and "If working hours are reduced immediately, small businesses will face severe labor shortages, making it difficult to hire staff and operate their businesses."

In particular, root industries that operate equipment 24 hours a day will inevitably need to hire additional staff if the 52-hour workweek is introduced, but they are already suffering from chronic labor shortages, making additional hiring difficult.

The shipbuilding industry must operate according to orders from overseas shipowners without considering domestic laws, and the construction industry frequently conducts outdoor work heavily affected by weather, making artificial adjustment of working hours nearly impossible.

The Federation requested, "The government should reconsider enforcing the system without a grace period and, considering that large corporations were granted a 9-month grace period and companies with 50 or more employees were given a 1-year grace period, provide an even longer preparation period for companies with fewer than 50 employees," and "at the very least, grant a grace period until the COVID-19 pandemic situation normalizes."