At the Gwanghwamun intersection, citizens are hurrying on their way to work. This is unrelated to the article. Photo by Asia Economy Database

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Twenty-one years after the introduction of the five-day workweek, discussions on shifting to a 4.5-day workweek are gaining traction, signaling a visible paradigm shift in the labor market. Some companies are already leading this change by implementing a four-day workweek.

According to the Ministry of Employment and Labor on September 8, as of 2022, the average annual working hours for wage workers in South Korea was 1,904 hours, which is 185 hours more than the Organization for Economic Cooperation and Development (OECD) average of 1,719 hours. Among OECD member countries, only Colombia, Mexico, Costa Rica, Chile, and Israel have longer working hours than South Korea. A study by the Korea Institute for Health and Social Affairs also found that South Korea ranked at the bottom among 31 countries in terms of "time sovereignty."

As artificial intelligence (AI) adoption and productivity innovation become key drivers of corporate competitiveness, there is growing criticism that long working hours not only undermine workers' quality of life but also dampen economic vitality. At the same time, with the proportion of the population aged 65 and over reaching 20.3% this year, marking the entry into a super-aged society, discussions on extending the retirement age have become inevitable.

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While labor unions and political circles are advocating for the introduction of a 4.5-day workweek and the extension of the retirement age, some companies are already experimenting with proactive changes.

SK Telecom and SK Square have introduced a 4.5-day workweek called "Happy Friday," allowing employees to take Fridays off if they complete 80 hours over two weeks. In July 2022, Hunet became the first in the industry to implement a four-day workweek, resulting in a more than threefold increase in job applications and a 20% rise in sales. Security company Suprema also saw its sales increase by 72% and operating profit by 51% after adopting the 4.5-day workweek.

Major conglomerates such as Samsung Electronics, LG Electronics, and SK Hynix are also expanding flexible work hour systems, re-employment of older workers, and long-term utilization of specialized personnel. Samsung Electronics supports work-life balance through a flexible work system, while SK Hynix encourages knowledge transfer through an engineer system without age or rank restrictions. LG Electronics has introduced a self-directed work hour system to boost employee satisfaction. Some local governments, including Jeju Island and Ulsan, are also operating a 4.5-day workweek using flexible work arrangements.

President Lee Jae-myung delivering opening remarks at an emergency forum to prepare measures for the introduction of a 4.5-day workweek during his tenure as the leader of the Democratic Party of Korea. Photo by Asia Economy Database

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The government is also pursuing the 4.5-day workweek and extending the retirement age to 65 as national policy tasks. During his presidential campaign, President Lee Jae Myung pledged to "reduce Korea's average working hours below the OECD average" and promised to push for the introduction of a 4.5-day workweek. He also committed to gradually extending the statutory retirement age, enacting relevant legislation by 2025, and preparing comprehensive government support measures.

However, challenges remain, as previous extensions of the retirement age resulted in side effects such as reduced youth employment and increased early retirements. Companies argue that "policies should focus on incentives rather than mandates," and emphasize that "the potential for reduced working hours to lead to decreased wages must also be discussed realistically."

Meanwhile, some experts suggest that improving labor productivity and enhancing corporate competitiveness are the fundamental solutions. Kim Daejong, a professor of business administration at Sejong University, said, "Companies should pursue efficiency through AI transformation, and workers should increase their work immersion. The government should expand such efforts through support measures like tax reductions."