SME Sector "Welcomes Flexible Working Hours... Regrets Selective Application"

"Expecting Swift Reform of the Working Hours System"

The small and medium-sized enterprises (SME) sector welcomed the government's stance announced on the 13th to continue promoting flexible working hours, but expressed regret over the plan to selectively apply flexible working hours depending on the industry and occupation.

Lee Seong-hee, Vice Minister of Employment and Labor, is announcing the results of a public survey on working hours and future policy directions on the afternoon of the 13th at the Government Complex Sejong in Sejong City.
[Photo by Yonhap News]

The Korea Federation of SMEs (Kbiz) stated in a commentary on the same day, "We hope that the reform of the working hours system will be implemented promptly."

Earlier, the Ministry of Employment and Labor announced that it would maintain the current 52-hour workweek framework while preparing improvement measures only for certain industries and occupations as needed.

In response, Kbiz pointed out, "The demand for flexible working hours may vary by industry and occupation, but the difficulties caused by the weekly extended work barrier are the same for companies regardless of industry or occupation, posing fatal risks to corporate growth and survival such as loss of business opportunities, quality degradation, and legal violations."

They continued, "Even if the demand is low in some industries or occupations, companies that need flexible working hours have no alternative. Moreover, for export companies, this inevitably acts as a constraint on global competitiveness, which could lead to national losses."

Kbiz also emphasized, "Industries currently facing severe labor shortages are not just recruiting employees but searching for people. Behind this labor shortage are workers who wish to work overtime for livelihood, such as sole breadwinners and middle-aged workers. In a situation where our economy is facing a decline in labor supply and a potential growth rate falling to the 0% range, a reasonable working hours system that allows free choice of working hours based on labor-management agreement is required."

Furthermore, Kbiz stated, "Issues arising from some violations related to the comprehensive wage system and misinterpretations of wage payment methods are matters the government should resolve through enforcement. The SME sector will also do its best to ensure fair compensation and protect workers' health rights."