Hankyungyeon "Under 52-Hour Workweek for Businesses with Fewer Than 300 Employees, Small and Medium Enterprises Face Increased Management Difficulties"

[Asia Economy Reporter Dongwoo Lee] The Korea Economic Research Institute stated concerns that the government's plan to enforce the 52-hour workweek system without an additional grace period starting January next year for workplaces with 50 to 299 employees may exacerbate management difficulties for small and medium-sized enterprises (SMEs).

On the 30th, Choo Kwang-ho, Director of Economic Policy at KERI, commented, "With this measure, many SMEs will find it difficult to allow overtime work, which could lead to challenges in maintaining timely production levels, and the labor cost burden from additional hiring is also expected to be significant."

Choo added, "Our companies are already struggling to survive amid the unprecedented difficulties caused by the novel coronavirus disease (COVID-19). We hope the government and the National Assembly will actively pursue institutional improvements such as flexible working hours, including a flexible work system, to minimize the side effects of the 52-hour workweek."

Earlier, Lee Jae-gap, Minister of Employment and Labor, held a briefing at the Government Seoul Office and reiterated the intention to implement the system from next year, stating, "The grace period for the 52-hour workweek system for companies with 50 to 299 employees ends at the end of this year, and as of now, the preparation status for the 52-hour workweek system appears to have significantly improved compared to before."

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