'52-Hour Workweek' Newly Applied Companies Receive '1.2 Million KRW Monthly' Labor Cost Support... Hong Nam-ki Emphasizes Early Stabilization (Update)

Opening Remarks at the 39th Emergency Economic Central Countermeasures Headquarters Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is presiding over the 39th Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office Building on the 24th. 2021.6.24 [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Sun-hee] The government will provide wage support to workplaces with 5 to 49 employees, where the '52-hour workweek system' will be introduced starting next month, to ensure smooth implementation of the system. Companies that maintain employment after hiring new staff during the reduction of working hours will receive up to KRW 1.2 million per month (KRW 800,000 for new hires + KRW 400,000 for existing employees) for up to two years.

On the 24th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presided over the 39th Emergency Economic Central Countermeasures Headquarters meeting at the Government Seoul Office and stated, "We will actively support the establishment of the system." He added, "We plan to prioritize the allocation of foreign workers to root industries and local companies that find it difficult to hire new employees."

Since most workplaces with 5 to 49 employees subject to the 52-hour workweek system from next month are small-scale venture companies such as startups, the field has been requesting a postponement of the system, citing difficulties in workforce management.

However, Deputy Prime Minister Hong said, "According to a recent survey jointly conducted by the Ministry of Employment and Labor, the Ministry of SMEs and Startups, and the Korea Federation of SMEs, over 90% (93%) of the 780,000 companies with 5 to 49 employees subject to this system responded that they can comply with the 52-hour workweek." He added, "This reflects the fact that there has been some preparation time, and that 95% of the target companies are workplaces with 5 to 29 employees (740,000 companies), which can agree with employee representatives to extend up to 60 hours by adding 8 hours to the 52 hours until the end of next year."

However, he acknowledged, "Some companies in the challenging root industries and companies with 30 to 49 employees, where the 52-hour system is applied immediately, have raised difficulties in applying the 52-hour system on-site, and we have taken this into consideration," expressing the intention to support the system's establishment.

Deputy Prime Minister Hong said, "At the early stage of system introduction, we will focus on encouraging on-site adaptation and early establishment of the newly applied system rather than enforcement and punishment as much as possible." He added, "This year, we will provide customized solutions through one-on-one expert visits to 4,400 companies subject to the system."

Regarding the second half economic policy direction (Ha-gyeong-bang) to be announced soon, Deputy Prime Minister Hong said, "The work is almost complete," and "We plan to announce it early next week after supplementing the details."

Deputy Prime Minister Hong stated, "We have actively identified and arranged policy tasks for the second half to accelerate and support crisis recovery and economic recovery speed, and have thoroughly reinforced tasks to prepare for future growth engines and economic structural transformation." He added, "We will respond especially to ensure 'complete economic recovery' accompanied by employment recovery and 'inclusive recovery' to prevent the widening 'K-shaped recovery' gap."

He emphasized, "To maximize the effectiveness and execution power of the policy tasks to be intensively promoted in the second half, we will link them as much as possible with the ongoing preparation of the second supplementary budget (Choo-gyeong)."

Meanwhile, the Economic Central Countermeasures Headquarters also discussed the 'Strategy for Realizing a Leading Nation in the Shipping Industry.' They evaluated the recent increase in shipping sales and fleet capacity according to the 'Five-Year Shipping Reconstruction Plan' established in April 2018 and expressed determination to fully respond to the recent surge in logistics demand to normalize logistics.

Deputy Prime Minister Hong said, "It is very urgent to adapt to rapidly changing environments such as strengthened international environmental regulations and accelerated smart logistics transition, and to prepare strategies for mid- to long-term structural improvement of the shipping industry and strengthening global competitiveness to leap forward as a leading shipping nation." He added, "While supplementing the existing 'Shipping Reconstruction Plan,' we will prepare and discuss the 'Strategy for Realizing a Leading Nation in the Shipping Industry,' which includes support for eco-friendly and digital transition." The specific details are expected to be finalized and announced next week.