Four Out of Ten Venture Companies Say "52-Hour Workweek Compliance Is Difficult"

Compliance Becomes More Challenging for Manufacturing and Companies with 50 or More Employees
Field Reports Highlight "Decline in Productivity" and "Operational Disruptions"
Calls Grow for System Improvements, Including Exemption Rules for Key Personnel

Four out of ten venture companies are struggling to comply with the 52-hour workweek regulation. The burden is particularly heavy for manufacturing companies and those with 50 or more employees. Industry voices are calling for greater flexibility in working hour regulations to help venture companies remain competitive.

According to the results of the "Venture Company 52-Hour Workweek Operation Status and Difficulties Survey" released by the Korea Venture Business Association on May 1, 41.1% of respondent companies reported difficulties in complying with the 52-hour workweek. By industry, manufacturing (44.4%) faced greater challenges than the service sector (35.8%). Notably, more than 70% of companies with 50 or more employees said compliance was difficult, indicating that the burden increases with company size.

This survey was conducted last March among 567 CEOs and HR managers of venture companies to identify the status and challenges of operating under the 52-hour workweek, as well as to assess the demand for more flexible working hour systems.

The main difficulties cited by respondent companies were "decline in productivity and operational disruptions" (42.5%), followed by "personnel issues" (30.1%) and "cost burden" (17.1%).

If a "total working hour system," which allows working hours to be adjusted on a monthly, quarterly, or yearly basis, were to be introduced, 68.4% of all companies said they would utilize it. In manufacturing, 70.3% expressed demand for such a system, while the figure was 64.7% in the service sector. By company size, demand was highest among companies with 50 or more employees.

By job category, demand for the total working hour system was especially prominent in technology development. More than half (52.9%) of technology development companies said the introduction of the system was necessary. Expected benefits of utilizing the system included "enabling concentrated work during specific periods" (49.2%), "increasing operational flexibility" (40.1%), and "facilitating global collaboration" (8.9%).

Regarding a system that allows partial exemptions from working hour regulations for key personnel, 82.4% said such a system was necessary. Among them, 24.7% said it was "immediately necessary," while 57.7% said it was "necessary under certain conditions." Expected benefits of introducing exemption rules included "faster research and development" (50.2%), "meeting project deadlines" (46.2%), and "strengthening corporate competitiveness" (33.5%).

The Korea Venture Business Association stated, "The uniform 52-hour workweek reduces the productivity and flexibility of venture companies and weakens their global competitiveness." The association added, "To enable venture companies to continue innovating based on autonomy and creativity, it is necessary to expand the management unit of overtime from a 'weekly' basis to 'monthly, quarterly, or yearly' through labor-management agreements, and to introduce exemption rules for key personnel such as those involved in research and development."