[THE VIEW] A 4-Day Workweek Without Labor Flexibility Is Poison

Resolving Rigidity in Korea's Labor Market Is the Top Priority
Reducing Working Hours Without Performance Accountability Is Risky

The domestic political scene is also chaotic amid an unstable international situation where tariff rates fluctuate constantly. Korean companies face a situation where they must endure both international uncertainty and domestic pressure, and they unanimously agree that management is more difficult than ever.

Recently, the Democratic Party of Korea leader Lee Jae-myung's proposal to introduce a '4-day workweek' was countered by the People Power Party with a pledge for a '4.5-day workweek.' The political sphere emphasizes that as more countries experiment with a 4-day workweek internationally, Korea should also consider a phased introduction. In particular, the Democratic Party argues that reducing working hours is essential for an autonomous, advanced technology society.

However, whether this system is currently suitable for Korea requires careful examination. According to the OECD's 'Employment Protection Index,' Korea scores 2.3 points for regular employee dismissal protection, which is higher than the OECD average (2.1 points), indicating relatively low labor market flexibility. In contrast, Nordic countries such as Iceland (1.9 points) and Belgium (1.8 points), which have introduced or are considering a 4-day workweek, share the characteristic of having high labor market flexibility.

These countries have environments where dismissals are relatively easy and companies can flexibly adjust their workforce, thus establishing a performance-oriented work culture. Naturally, the 4-day workweek is both a right and a responsibility for workers, requiring definite performance in exchange for fewer working hours, and workers must accept the risk of dismissal if performance is insufficient. In such an environment, reducing working hours can actually lead to increased productivity.

On the other hand, Korea's labor environment makes it difficult to hold workers accountable for freedom. Even if working hours are reduced, dismissals are not easy when performance or productivity is not maintained. Korea's labor market has very low overall flexibility due to strong employment protection centered on regular workers and powerful labor unions.

At this point, Korea is not at the stage to discuss a 4-day workweek. The labor market remains rigid, and due to overprotection of regular workers and strong unions, flexible workforce management by companies, especially large corporations, is practically impossible. At a time when rapid changes and global crises must be addressed, current systems and regulations hinder efforts to increase productivity or strategically allocate personnel.

Office workers moving as they get off the subway. Photo by Yonhap News

In Korea's case, simply reducing working hours without presupposing labor flexibility and responsibility directly leads to decreased productivity and weakened international competitiveness. For the survival and development of companies, the autonomous design authority over working hours and compensation systems must be guaranteed.

Innovative American big tech companies have built global competitiveness by designing performance-oriented work methods and bold compensation structures based on autonomy and flexibility. Singapore, home to many global companies, allows working conditions for workers above a certain wage level to be determined by contracts with employers, enabling companies to compete for talent and workers to freely choose.

This approach entrusts working hours and compensation systems to corporate discretion, allowing talent who seek high income by working up to 80 hours a week to join suitable companies, while those who prefer reasonable working hours and pay can choose others. A labor and compensation system that respects the ambition to work more and earn more is key to innovation and growth.

Even as technology companies like SK Hynix and Samsung Electronics stay up all night developing advanced processes, new materials, and AI technologies, institutionalizing reduced production time pushes them to fall behind in international competition. At a crucial time when Korea should lead advanced technology, the government is instead limiting corporate capabilities. If companies lose competitiveness, ultimately the quality of life for workers, i.e., citizens, also declines.

For Korea to seriously discuss a 4-day workweek, a flexible labor market system that allows flexibility in hiring and firing, autonomy over overtime work, and linkage between performance and compensation must be established in advance. However, Korea currently does not meet any of these prerequisites.

Therefore, the 4-day workweek remains a distant future task. What is more urgent is not political 'packaging' but creating a flexible labor market environment where Korean companies can regain vitality, create quality jobs, and drive economic growth.

Kyung Na-kyung, Professor, Department of Computer Science, National University of Singapore