Office workers near Gangnam Station in Seoul. (Image courtesy of Yonhap)
SEOUL, Sept. 9 (Korea Bizwire) — As South Korea weighs proposals for a shorter workweek and extended retirement age, a growing number of companies are already adopting flexible schedules — in some cases reducing hours to just four days — in what could become a model for broader labor market reform.
Major firms including SK Telecom and SK Square have introduced “Happy Friday,” a 4.5-day system that gives employees every other Friday off if they meet 80 hours over two weeks.
The telecom giant has also launched “Next Career,” offering paid leave of up to two years for workers aged 50 or with more than 25 years’ service, allowing them to explore new paths before retirement while retaining some benefits.
Other conglomerates are experimenting with tailored approaches. SK hynix exempts top engineers from mandatory retirement through special designations, while Samsung Electronics and LG Electronics allow employees to flexibly manage their 40-hour workweeks. Samsung also rehired retirees with three or more children on fixed-term contracts.
Smaller companies have moved even faster. EdTech firm Hunet introduced a four-day workweek in 2022 and reported a threefold increase in job applicants and a 20 percent rise in first-half revenue the following year.
Suprema, a security solutions provider, said sales jumped 72 percent and operating profit 51 percent after adopting a 4.5-day week. Some local governments, including Jeju Province and Ulsan’s Jung District, have also embraced shorter weeks.
Dockworkers engaged in container lashing operations. (Image courtesy of Yonhap)
The moves come as unions press for nationwide adoption of a 4.5-day standard. Industry groups say the experiments show promise but caution that scaling them across diverse sectors will be difficult without government incentives and a shift in attitudes on both sides of the bargaining table.
Critics warn that without improving productivity — which lags at 77 percent of the OECD average — shorter workweeks could undermine competitiveness. Companies are urged to accelerate digital transformation and artificial intelligence adoption, while employees are encouraged to raise performance levels.
“Efficiency gains through AI and greater worker engagement must go hand in hand,” said Kim Dae-jong, a business professor at Sejong University. “The government should reinforce these efforts with tax breaks and other incentives.”
The debate highlights South Korea’s dilemma: balancing worker well-being with economic competitiveness in an era of demographic decline and global industrial rivalry.
Lina Jang (linajang@koreabizwire.com)
