52-Hour Workweek, Serious Accidents, and Minimum Wage Increase... SMEs Say "Excessive Labor Risks"

Korea Federation of SMEs Holds '1st Labor Workforce Committee'
SMEs "No Clear Measures to Address Labor Risks"

A factory of a small to medium-sized manufacturing company located in Gimpo, Gyeonggi.
Photo by Lee Jun-hyung

[Asia Economy Reporter Junhyung Lee] Voices from the small and medium-sized enterprise (SME) sector have raised concerns that labor risks due to regulations such as the 52-hour workweek and the Serious Accidents Punishment Act are excessive.

The Korea Federation of SMEs announced on the 21st that it launched the newly formed Labor and Workforce Committee and held the '1st Labor and Workforce Committee Meeting' at the SME Federation in Yeouido.

At the meeting, the committee discussed labor issues related to SMEs, including the reduction of working hours, the enactment of the Serious Accidents Punishment Act, and the minimum wage increase. The members unanimously agreed that they have not found clear measures to cope with the deepening labor risks such as the 52-hour workweek, which has been fully applied since this year, and the Serious Accidents Punishment Act, which will be enforced from next year.

Joo Bowon, co-chairman and director of the Korea Metal Heat Treatment Industry Cooperative, emphasized, "As the economy gradually recovers, factory operating rates need to be increased, but the 52-hour workweek could be the biggest obstacle." He added, "At least until the end of the COVID-19 pandemic, a grace period should be given to companies with fewer than 50 employees, and labor inspections should be relaxed for companies with 50 or more employees, allowing for flexible application of the system."

Lee Hoseok, co-chairman and director of the Korea Tank Industry Cooperative, said, "Small-scale SMEs do not have the capacity to invest in safety to comply with the Serious Accidents Punishment Act," adding, "An additional preparation period is urgently needed, and the obligation to manage industrial accidents should be minimized to a level acceptable on the ground."

Meanwhile, the newly launched Labor and Workforce Committee is composed of representatives from a more diverse range of industries than before. The committee plans to operate until next year.

This content was produced with the assistance of AI translation services.