"4.5-Day Workweek Without Wage Cuts? No Manpower or Budget to Fill Gaps," Say Business Leaders [Industry Concerns Over Legislation] ①

Steel Industry: Most Steel Mills Operate 24 Hours in Shifts
"If Working Hours Are Reduced, More Shifts Will Be Needed"
Shipbuilding: "Additional Work Required to Meet Contract Deadlines"
"Enhancing Autonomy and Flexibility Is More Important Than Reducing Working Hours"

Since the inauguration of the Lee Jae Myung administration, the industrial sector's immediate concern is whether measures related to reducing working hours?such as the implementation of a 4.5-day workweek, revisions to the 52-hour workweek, and improvements to the designation of special industries?will become a reality. As the rise of China threatens manufacturing industries worldwide and places South Korea within the storm's path, any reduction in working hours is inevitably linked to increased costs and productivity burdens. This concern is voiced not only by high-tech industries that require substantial research and development (R&D) time but also by labor-intensive sectors such as shipbuilding and steel, where the pressure is particularly acute.

An official from the steel industry stated on June 5, "Since steel mills must operate 24 hours a day, most work is done in shifts, so reducing working hours means more shifts are needed. This inevitably becomes a burden, especially under current economic difficulties." The shipbuilding industry commented, "Ships must be completed and delivered within the contracted construction period, so even if regular working hours are reduced, additional work is still necessary. Moreover, with the recent shortage of new workers entering the shipbuilding sector, companies are forced to bear the costs and burdens of filling these workforce gaps."

There are also criticisms that a 4.5-day workweek does not align with the realities of the workplace. The main concern is whether it is possible to maintain the same level of productivity while reducing the number of working days, especially when South Korea's manufacturing competitiveness is being caught up by China and the current work intensity and structure remain unchanged. From a business perspective, reducing working hours without cutting wages inevitably leads to increased costs. For small and medium-sized enterprises or regional manufacturers, where productivity and labor costs are directly linked, the issue is even more sensitive. As working hours decrease, new hires must be increased accordingly, but securing enough workers is not easy.

The business community argues that before rigidly implementing a 4.5-day workweek, autonomous adjustments to working hours between labor and management should take place first. They believe that, rather than simply reducing working hours, it is more important to enhance autonomy and flexibility through various work arrangements, which can also reflect the characteristics of each industry. Hwang Yong Yeon, head of the Labor Policy Division at the Korea Employers Federation, stated, "While it is correct in the long term to align long working hours with advanced country standards, it is more necessary to allow labor and management to choose and use working hours flexibly and autonomously through mutual agreement."

Lee Jae Myung, leader of the Democratic Party of Korea (right), and Lee Jae Yong, chairman of Samsung Electronics, are attending the "Youth Employment Support Field Meeting" held on March 20 at the Samsung Youth Software Academy (SSAFY) in Yeoksam-dong, Gangnam-gu, Seoul.

In particular, doubts are being raised about the feasibility of the policy, especially given the premise of "transition without wage reduction." The 4.5-day workweek proposed by President Lee Jae Myung involves reducing the number of working days per week from five to 4.5 while maintaining current wage levels. During his candidacy, he stated, "We should move toward a four-day workweek country by first implementing a 4.5-day workweek by reducing working hours."

An official from a state-run research institute expressed a cautious stance, saying, "A four-day workweek without wage changes is realistically difficult." The official added, "Many experts do not consider this a viable scenario." He continued, "Since employees will not agree to wage cuts, the government would have to provide subsidies from the budget, but the current fiscal conditions make this impossible. This is a much more contentious issue than extending the retirement age or raising the minimum wage."

Another challenge for the new administration is whether to make exceptions to the 52-hour workweek for semiconductor research and development (R&D) personnel. The semiconductor industry wants the passage of a special semiconductor law that would allow exceptions to the 52-hour workweek specifically for R&D staff. Currently, this special law is pending in the National Assembly. President Lee has previously stated that, since the period for allowing special extended work for semiconductor R&D personnel has already been increased from three months to six months, there is no need for additional exceptions to the 52-hour workweek.

However, the semiconductor industry maintains that institutionalization is necessary, at least for the R&D sector. Although systems such as the discretionary work system exist under current labor laws, their application is limited by legal restrictions on the types of work covered, leading to a disconnect with reality. An industry official said, "There are aspects of the 52-hour workweek that do not align with practical fieldwork, so it is urgent to devise flexible operational measures that reflect industry characteristics. Bold investments are also needed in education and research infrastructure to foster high-level talent and achieve technological self-reliance."

Democratic Party presidential candidate Lee Jae Myung and Chairman Choi Tae Won of the Korea Chamber of Commerce and Industry attended the meeting with the heads of five major economic organizations invited to the presidential candidates on the 8th of last month at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul.