South Korea’s labor landscape is on the cusp of its most significant transformation in 21 years, with a potential shift towards a 4.5-day work week and a phased extension of the mandatory retirement age. These proposed changes are igniting a fierce national debate, reflecting a society grappling with work-life balance, economic competitiveness, and an aging population.
The driving force behind these initiatives is President Lee Jae-myung, who campaigned on a promise to reduce South Korea’s average working hours to below the OECD average. His administration is pushing for a 4.5-day work week and a gradual extension of the legal retirement age to 65, with legislative action and governmental support anticipated as early as 2025 .
Labor unions are actively championing these reforms. Hyundai Motor’s union recently staged a partial strike, demanding both the retirement age extension and the 4.5-day work week . Similarly, the National Federation of Financial Industry Unions is pressing for the same concessions, having resolved to conduct a general strike .
Public sentiment in South Korea appears to favor the changes. A Korea Research poll conducted in February indicated that 61% of respondents supported the introduction of a 4.5-day work week . However, a significant caveat remains: 60% of these supporters also believe their current salary levels should be maintained, regardless of reduced working hours .
This expectation raises considerable concerns for businesses, who fear potential decreases in productivity and escalating labor costs. Many argue that if a shorter work week is adopted, it must be accompanied by employment adjustments to mitigate these impacts . The experience of the 52-hour work week, which reportedly led to a decline in productivity within the Research and Development (R&D) sector, highlights these apprehensions .
The unfolding discussions point to a critical juncture for the South Korean economy as it seeks to balance worker welfare with corporate viability and global competitiveness.
