A small auto parts manufacturer with about 50 employees, including foreign workers, is raising alarms as leading presidential candidates from both parties push for a 4.5-day workweek. Under the current 52-hour workweek system, the company already struggles to adjust employee hours flexibly based on workload. With the proposed reduction to a 36-hour, 4.5-day schedule, the CEO worries whether they can meet client delivery deadlines on time.
The CEO said, “We will have to either cut order volumes or hire more staff to finish work within the reduced hours. The former hampers growth, while the latter increases labor costs.”
Many small businesses criticize these policies as disconnected from workplace realities. Democratic Party candidate Lee Jae-myung has been a strong advocate for the policy, pledging to reduce working hours below the OECD average and support a government-led implementation across the country.
Under the current system, employees work five days a week, eight hours per day, plus up to 12 hours of overtime. Lee’s plan would reduce regular hours from 40 to 36 per week, with four full days plus a half-day on Friday, while keeping overtime allowances intact.
The government will not immediately amend labor laws to mandate the 4.5-day workweek. Instead, companies will be allowed to choose freely between the five-day and 4.5-day schedules. To support adoption, incentives such as labor cost subsidies are expected to be offered.
But small- and mid-sized business leaders warn that productivity could decline. A veteran metal parts manufacturer said, “Producing the same output in fewer hours is not simple. We’d have to hire more workers, increasing costs.” He added, “This is another case of politicians eroding business freedom under the guise of choice.”
Another SME head warned of internal inequality, noting, “If some firms adopt 4.5 days while others stick to five, workers’ work-life balance could split. With the widening gap between large firms and SMEs, this divide could bring unforeseen fallout.”
Experts agree that reducing work hours is a necessary step for Korea’s economy and society but stress that SMEs must be carefully considered. “Since the details of the 4.5-day workweek are not yet clear, social debate is necessary,” said Cho Joo-hyun, head of the Korea SMEs & Startups Institute (KOSI). “We must consider large and small firms separately and allow for a gradual, flexible approach tailored to each workplace.”
