The South Korean technology industry is at a crossroads. It is already preparing to comply, gradually, with the new 52-hour workweek law, which goes into full effect on January 1, 2025. This regulation came into effect beginning in 2018. It primarily focuses on large companies with more than 300 employees and public institutions to nurture a more positive work-life balance. Industry leaders are freaking out. They are concerned that this would dramatically limit productivity and innovation, especially in fields that require a high level of development effort.
South Korea’s typical workweek is already one of the longest in the world at 52 hours. Employees are allowed to work up to 12 hours in overtime, which is usually paid at 1.5 times the employee’s regular wage or higher. This system contrasts sharply with other countries. In Canada, the standard workweek is 38 to 40 hours. Singapore only allows for a 44-hour work week, including up to 72 hours of permitted overtime per month. China has a conventional 40-hour, 5-day work week. Countries such as Germany, the UK, and France have average workweeks in the range of 33 to 48 hours.
The United States has a de facto 40-hour workweek, enforced as a maximum under the Fair Labor Standards Act (FLSA). By contrast, Australia doesn’t set a clear standard at all, but permits additional hours when mutually agreed to by the worker and employer. Japan sticks to an identical standard of a 40-hour workweek, permitting as much 45 hours in overtime per month.
In fact, many leaders in tech in South Korea are really worried about the upcoming regulation being inflexible and overly prescriptive. Yongkwan Lee, a prominent figure in the industry, comments on how “the 52-hour workweek is indeed a challenging factor when making investment decisions in deep tech sectors.” He elaborates on the industry’s operational demands: “For companies like ours, intensive development efforts are often required for approximately two weeks prior to a product launch, after which the workload eases once the product stabilizes.”
That last aspect of the new regulation introduces a complicated dynamic regarding productivity and efficiency. Kim, an engineer in the tech sector, emphasizes that “our work isn’t about completing predefined tasks within fixed hours. It’s about using creativity and deep focus to solve challenges and create new value.” He continues that arbitrary disruptions at the worst possible times can stop innovation in its tracks.
Some industry leaders suggest exploring flexible working arrangements to better accommodate the nature of their work. Yongkwan Lee proposes a system with monthly opt-in/opt-out. This would allow teams to crunch ~60 hours a week leading up to a product launch, but average the needed 52 hours per week post-launch. Only with such an approach will agencies be able to stay operationally efficient without putting employee health at risk.
In South Korea, employees enrolled in the special extended work program are exempt from the 52-hour limit. Both with governmental permissions and the agreement of employers, they’re allowed to work a staggering 64 hours a week. Such flexibility is needed to meet the urgent needs of some industries, especially sectors where the urgency of building projects requires extended work days.
Kim highlights the differences in roles within the engineering field, stating that “even among engineers, production roles in manufacturing differ from R&D positions.” He notes that productivity in manufacturing is highly sensitive to hours worked. In his op-ed, he stresses the need for reasonable overtime pay.
As South Korea navigates these regulatory changes, companies like Bluepoint Partners adopt innovative approaches to working hours by not strictly tracking employees’ time. This flexibility includes a realization that people are more productive when trusted to work toward outcomes rather than based on inflexible hours worked reflected in outdated management styles.
Critics of the new regulation from industry argue it will create required overtime pay and a doubled paid leave. Consequently, impacted industries will experience increased employment costs. Therefore, businesses need to continue to innovate in how they comply, all while preserving their competitive advantages.
