South Korea has begun testing a shorter private-sector workweek as part of efforts to reduce excessive working hours and improve work-life balance. The pilot program, launched in Gyeonggi Province in June, allows participating companies to shorten employee schedules to 35 hours per week, with options such as four full days every other week or a consistent 4.5-day week, according to Money and Banking.ย
The initiative involves 67 small and mid-sized businesses and one public agency. The provincial government is offering financial support of 260,000 won (about $187) per employee each month for those companies that cut weekly hours by five. A total budget of 1 billion won has been allocated for the program.
While the project is aimed at improving employee satisfaction and addressing larger social issues like South Koreaโs low birth rate, it raises concerns about wage maintenance and productivity. Critics argue that rolling out such a model nationwide could strain local government finances.
According to OECD data, South Koreans worked an average of 1,865 hours in 2024 โ significantly higher than the OECD average of 1,736 hours, and one of the highest among member nations.ย
President Lee Jae-myung has described work-time reform as essential, pointing out that the country’s long-standing focus on quantity over quality is no longer sustainable. However, his administration is avoiding a nationwide legal mandate, preferring to encourage voluntary changes across industries.
Several major firms are already experimenting with flexible systems. Samsung Electronics, for instance, allows employees to take certain Fridays off, while SK Telecom offers โHappy Fridaysโ twice a month.
Younger generations, especially Millennials and Gen Z, are increasingly prioritizing work-life balance when choosing employers. A recent survey by the Federation of Korean Industries highlighted this shift, with many younger workers valuing personal time as much as salary.
For now, the pilot project will serve as a testbed to assess the impact of reduced hours on employee performance, mood, and company operations, potentially setting the stage for broader reform in the future.
