[Initial Insight] MZ Generation and the 52-Hour Workweek

[Asia Economy Reporter Oh Hyung-gil] The “in-person year-end party,” postponed due to COVID-19, has returned after three years, but the mood is not entirely cheerful. A manager from a major 10-group conglomerate recently said, “I couldn’t even bring up the topic of the year-end party,” adding, “Internally, there have been talks about refraining from group gatherings, so each team is only given a ‘beopka (corporate card)’ or something like that,” waving his hand dismissively.

The shift in year-end party culture can be partly attributed to the economic downturn, but it seems more rooted in the emergence of the 2030 generation and the MZ generation (Millennials + Generation Z). Those who prioritize “me over work” find it difficult to spend the precious year-end with old-fashioned, authoritarian bosses.

The concept of the workplace is also changing after the MZ generation. Companies are boldly transforming to satisfy those who value “work-life balance (WLB)” and constantly dream of changing jobs or quietly resigning. Not only are smart offices and flexible work systems being introduced, but starting with IT and venture companies, more places are experimenting with “workcation,” a new concept combining vacation and work at holiday destinations.

Experiencing remote work due to COVID-19 has accelerated work innovation. Overseas, experiments with a four-day workweek have been conducted. The results showed increased company sales, decreased absenteeism, and reduced turnover rates. Workers, despite a slight increase in work stress due to reduced hours, reported satisfaction as they found a balance between work and personal life.

It is possible that the five-day workweek, implemented only twenty years ago in Korea, might change in the near future.

Amid the demand for workplace changes, the Yoon Seok-yeol administration has proposed flexibilizing the 52-hour workweek system. Recently, a recommendation was made to manage extended working hours not only on a weekly basis but also on a monthly or longer basis, bringing the topic to the forefront.

Introduced in 2018, the 52-hour system limits extended working hours beyond the basic 40 hours to within 12 hours per week. The proposal is to allow extended working hours as long as they do not exceed 52 hours per month instead of 12 hours per week. If restructured according to the recommendation, the maximum weekly working hours could increase to 69 hours.

The industry has long demanded improvements to the 52-hour system to allow flexible adjustment of working hours depending on the sector and timing. This reflects the needs of small and medium-sized enterprises that cannot afford overtime work just before product delivery deadlines and workers who want to earn extra pay but cannot work additional hours. The rigid working hours system makes rational workforce management difficult and lowers corporate productivity.

However, the labor sector opposes the revision of the 52-hour system, fearing that working hours may increase. They worry that loosening regulations through law could revive long working hours in various places.

Korea, which started with a low-wage, labor-intensive growth model, still has long working hours. In 2021, among OECD countries, Korea ranked 5th with 1,915 working hours, about 200 hours more than the OECD average of 1,716 hours. It holds the unenviable position of having the longest working hours among countries with incomes over $30,000.

We are at a turning point transitioning from intensive growth through industrialization to technology-driven innovative growth. The demand for work-life balance is also rising, especially among the MZ generation. As times have changed, it is hoped that future discussions on the 52-hour workweek system will reflect diverse values regarding labor.

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