Vice Minister Kim Minseok Says "Uniform Implementation of 4.5-Day Workweek Is Difficult"

Retirement Age Extension Requires Consideration of Conflict with Youth Employment
Discussion on Flexible Working Hours "Not a Framing Battle"
Legislation for Fund-Type Retirement Pensions "We Want to Do It"

Minseok Kim, Vice Minister of Employment and Labor (Acting Minister), stated on the 7th that "a uniform 4.5-day workweek is difficult to implement." While political circles have proposed a four-day workweek and a 4.5-day workweek as presidential campaign pledges, he predicted that there would be difficulties in suddenly introducing such measures at workplaces.

At a press briefing with reporters held at the Government Complex Sejong on this day, Vice Minister Kim said, "Given the current situation, do you think companies have the financial capacity to implement a 4.5-day workweek?" He added, "It is not easy to introduce it uniformly." He pointed out that if hourly wages rise, government financial support would be necessary, and said, "We also need to consider how much fiscal investment would be required."

Minseok Kim, Vice Minister of Employment and Labor (Acting Minister). Ministry of Employment and Labor

However, regarding the need to discuss flexibility in response to the changing labor environment, which remains bound by the Labor Standards Act enacted in 1953, he expressed that such discussions are necessary. Vice Minister Kim explained, "This is not a matter of framing or a labor-management issue," and added, "I think it's time to open up and talk about these things."

As the Economic, Social and Labor Council is set to present a public interest committee proposal on continued employment tomorrow, Vice Minister Kim commented on whether the government would take further legislative steps, saying, "We will review the contents and make a decision." He predicted that full-scale discussions on extending the retirement age would "take place in the next administration," and emphasized, "Since there is a conflict with youth employment, there must be a clear opportunity to consider this issue."

Regarding efforts to improve retirement pension returns through the introduction of a fund-type system, the Ministry of Employment and Labor clarified that no decision has been made on whether to exclude the National Pension. Vice Minister Kim said, "The principle is that fund-type pensions are private funds, and what happens with public funds is not for us to decide." He also stated, "We are considering ways to enhance internal expertise through fund-type experts."

Regarding the Ministry's plan to prepare the necessary legislation for retirement pension fund-type systems by the second half of the year, he reiterated his intention by saying, "We want to do it." However, he pointed out, "While it is easy to change the system, the issue is whether it will be accepted." He also said, "The key is to coordinate with fiscal authorities regarding (tax support)," and added, "We are considering to what extent it should be implemented in the field."

On whether the pilot project for foreign domestic workers will be expanded into a full-scale project next month, Vice Minister Kim said, "It will not be easy." While he stated that the pilot project was "successful," he also explained, "Ultimately, it comes down to money," indicating that additional discussions on wages and other matters are necessary. He also pointed out the policy direction, saying, "The key is to create an environment where people who have given birth can raise their children, given the severe low birth rate."

When asked whether the special extended work hours, which were limited to the semiconductor research and development (R&D) sector in March, could be expanded to the artificial intelligence (AI) sector, Vice Minister Kim said that "further review is needed for the AI sector." He explained, "We need to take a detailed and in-depth look at how things like (work hour extensions) are being handled in the AI field."