Lee Jae-Myung's Government Explores 4.5-Day Workweek

The Lee Jae-myung administration is set to actively pursue labor policies aimed at reducing working hours. On September 17^th, the Ministry of Government Legislation announced plans to complete the enactment and revision of 66 subordinate regulations, which include initiatives to improve working conditions. The government intends to submit the Act on Supporting the Reduction of Actual Working Hours to the National Assembly within this year. The bill also explicitly bans the comprehensive wage system, which bundles overtime pay into fixed salaries, signaling a commitment to curbing long working hour practices and improving workers’ quality of life. In 2023, Korea’s annual working hours stood at 1,874 hours, about 132 hours above the Organization for Economic Cooperation and Development (OECD) average, while other advanced economies, such as Belgium, have already moved to legally reduce working hours. For this reason, President Lee first proposed a 4.5-day workweek during his June 3^rd election campaign, aiming to bring Korea’s annual working hours below the OECD average by 2030. Since taking office, he has met with labor union leaders to confirm a shared understanding of the plan. For the policy to take effect, the bill must pass the National Assembly after discussions between the ruling and opposition parties. As reduced working hours could lower productivity, additional hiring will be needed. While large corporations may face higher labor costs to secure additional staff, small and medium-sized enterprises are expected to benefit by gaining access to a larger pool of potential employees.