Innovation and Venture Industry Urges Permanent Extension of 8-Hour Additional Overtime Work System by Abolishing Sunset Clause

Kang Sam-gwon, Chairman of the Korea Venture Business Association.

[Asia Economy Reporter Donghyun Choi] The innovation and venture industry has expressed concerns over the sunset of the 8-hour additional extended working hours system, which is only allowed for companies with fewer than 30 employees, set to expire at the end of this year.

The Innovation Venture Council, which includes the Korea Venture Business Association, Korea Startup Forum, and Korea Management Innovation Small and Medium Business Association (MainBiz Association), issued a statement on the 18th, saying, "We strongly request the abolition of the sunset clause on the 8-hour additional extended working hours system and the legalization of permanent support."

The council stated, "Since the full implementation of the 52-hour workweek system in July last year, venture companies have been experiencing severe labor shortages," adding, "Amid this, they are facing even greater difficulties due to the complex economic crisis of high interest rates, high exchange rates, and high inflation."

The council continued, "So far, workplaces with fewer than 30 employees have barely managed by using the 8-hour additional extended working hours system, which allows up to 60 working hours per week if agreed upon by labor and management," but appealed, "However, if the sunset clause takes effect at the end of this year, even this will no longer be available."

According to a detailed survey of venture companies, 89.1% of all venture companies have fewer than 30 employees. The council's position is that many venture companies will suffer from labor shortages if the sunset clause takes effect.

The council emphasized, "If the system disappears at the end of this year, venture companies struggling with unprecedented management and labor difficulties will have no means to survive," adding, "Venture companies are now in a situation where they must worry about survival rather than innovation."

Furthermore, the council added, "To minimize damage to the innovation and venture industry, the 8-hour additional extended working hours system must be maintained," and "We earnestly request once again that the urgent voices from the field be heard."