"Urgent Need to Supplement the 52-Hour Workweek System"

Keywords That Define New Year's Messages from Heads of SMEs and Venture Industry

The small and medium-sized venture business sector unanimously argued that the current 52-hour workweek system needs to be supplemented to better fit reality in 2022. This was expressed through the New Year's addresses of key leaders in the small and medium-sized venture business community. They lamented that the 52-hour workweek system, which was expanded from July this year to workplaces with 5 or more but fewer than 50 employees, has become the biggest obstacle to the management of small and medium-sized ventures. Furthermore, with the presidential election next year and the industry being pushed into crisis due to COVID-19, there is a growing recognition that establishing labor policies reflecting the industry's situation is more important than ever.

On the 31st, Kim Gi-moon, Chairman of the Korea Federation of SMEs, stated in his 2022 New Year's address, "Since labor without employment cannot exist, the 52-hour workweek system, which is the biggest difficulty for small businesses, must be supplemented and operated in a way that fits reality." Chairman Kim's position is that the 52-hour workweek system should be adjusted to reflect the reality of small businesses facing labor shortages, changing the rigid 12-hour weekly overtime limit to a 52-hour monthly limit so that it can be flexibly operated according to workload.

The mid-sized enterprise sector also emphasized the need to reform the 52-hour workweek and flexible working hour systems next year. Kang Ho-gap, Chairman of the Korea Federation of Mid-sized Enterprises, announced in his New Year's address, "In response to the rapid surge in demand in the post-COVID era, the 52-hour workweek system, alternative work, and flexible working hour systems should be reformed focusing on industrial sites," adding, "We must realize various policies and labor flexibility to drive reshoring amid rapid changes in global outsourcing and value chains."

The venture and startup sector shares the same view. They pointed out that the 52-hour workweek system this year has exacerbated labor shortages in venture companies. Kang Sam-gwon, Chairman of the Korea Venture Business Association, said in his New Year's address, "Along with the severe recruitment difficulties for technical personnel across all industries, rigid labor policies such as the introduction of the 52-hour workweek system have worsened the labor shortage in venture companies."

The 52-hour workweek system is recognized as a problematic issue across the industry, encompassing small businesses, mid-sized enterprises, and venture companies, and is considered a matter that must be supplemented next year. In fact, a survey conducted by the Korea Federation of SMEs in October on 414 companies with fewer than 300 employees found that 54.1% reported difficulties due to the implementation of the 52-hour workweek system. In particular, one out of two manufacturing companies complained about the heavy burden of labor costs due to additional hiring. In a recent public opinion poll by Asia Economy and Winzi Korea Consulting this month, 53.1% of respondents said the 52-hour workweek system should be implemented flexibly, considering the characteristics of each company and industry, accounting for more than half.

However, since there are differing opinions on the 52-hour workweek system, debates surrounding it are expected to continue next year. According to a recent "Public Perception Survey on the 52-hour Workweek System" conducted by the Ministry of Employment and Labor through an external professional agency, 77.8% of Korean workers responded that the 52-hour workweek system is a "good policy." From the industry's perspective, cooperation with the new government to be established is crucial for the system's realization.

Chairman Kim said, "In 2022, there will be a presidential election and simultaneous local elections nationwide to elect new leaders who will lead the future of the Republic of Korea," adding, "For Korea's leap forward and the creation of numerous jobs, a major transition to an era of growth for 6.88 million small businesses is necessary." Chairman Kang Ho-gap also said, "The moment that will determine the direction of Korea's next five years is rapidly approaching," and emphasized, "We must shed all distorted ideologies and inertia and aim for a prosperous and harmonious tomorrow for all citizens." Chairman Kang Sam-gwon stressed, "As the Fourth Industrial Revolution and digital transformation accelerate, innovation across our economic system and institutions is an unavoidable task," and added, "We will work closely with the new government to help Korea leap forward as an innovation powerhouse full of entrepreneurial spirit."