Companies with fewer than 30 employees to be subject to 52-hour workweek from next year... Industry calls for retention of grace period system

Kim Ki-moon, President of the Korea Federation of SMEs

[Asia Economy Reporter Kim Bo-kyung] The small and medium-sized enterprise (SME) sector has requested the continuation of the exemption system for the 52-hour workweek for companies with fewer than 30 regular employees, which is scheduled to end at the end of this year.

The Korea Federation of SMEs issued a statement on the 18th, saying, "The sunset of the 8-hour additional extended work system, which is allowed only for companies with fewer than 30 employees, will arrive at the end of this year," and added, "The SME sector strongly requests the abolition of the sunset clause and the permanent establishment of the system."

They appealed, "Small businesses with fewer than 30 employees have barely managed by using the 8-hour additional extended work system, which allows up to 60 working hours per week if agreed upon by labor and management," and "Most small businesses have no alternative other than the 8-hour additional extended work system."

According to a survey by the Korea Federation of SMEs last month, 91.0% of manufacturing companies with fewer than 30 employees that exceed 52 working hours per week rely on this system. 75.5% of respondents said they have no countermeasures if the sunset clause arrives.

The Federation stated, "If the system disappears at the end of this year, small businesses struggling to survive amid high interest rates, high exchange rates, high prices, and unprecedented labor shortages will have no means to endure," and added, "They are facing a situation where they must consider the survival of their business due to a sharp decline in sales, let alone meeting delivery deadlines."

Finally, they said, "To minimize the damage to the SME sector, the 8-hour additional extended work system must be maintained," and "We earnestly request the government and the National Assembly to listen to the desperate voices from the field."

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