What's Happening?
South Korea's tech industry is grappling with the country's 52-hour workweek limit, which was fully implemented for all businesses on January 1, 2025. This regulation, initially introduced in 2018 for large
companies and public institutions, restricts the standard workweek to 40 hours with up to 12 hours of overtime. The government has allowed special extended work programs for deep tech sectors, permitting up to 64 hours of work per week with consent and approval. However, these exemptions are set to be scaled back. Industry leaders, such as Bohyung Kim, CTO of LeMong, argue that the workweek limit feels more like a restriction than a protection, particularly in sectors like semiconductors and AI, where intense workloads are common.
Why It's Important?
The 52-hour workweek limit is significant as it impacts South Korea's competitiveness in the global tech industry. Companies in deep tech sectors, such as semiconductors and AI, face challenges in maintaining productivity and meeting critical growth milestones due to these restrictions. The regulation could potentially slow down innovation and affect investment decisions, as noted by Yongkwan Lee, CEO of Bluepoint Partners. While the regulation aims to protect workers, it may hinder the flexibility needed for high-tech R&D projects, where work intensity often varies. This situation highlights the tension between labor rights and the demands of a competitive global market.
What's Next?
The South Korean government plans to tighten working-hour regulations by scaling back special exemptions. This move may prompt further debate among lawmakers and industry leaders about the balance between worker protection and business needs. Companies may seek more flexible arrangements, such as monthly average work hours, to accommodate project timelines. The outcome of these discussions could influence future labor policies and the operational strategies of tech companies in South Korea.
