Manufacturing Revenue Drops Under Blanket 52-Hour Workweek Cap
A state-run research institute's analysis has found that applying the 52-hour workweek uniformly to all workplaces regardless of industry or company size reduces revenue and productivity in the manufacturing sector and among small and medium-sized enterprises. In contrast, service industries and large companies were found to maintain their business performance.
The analysis is based on research data titled "Working Hour Policy in an Era of Population Decline," submitted by the Korea Development Institute (KDI) on the 14th to Rep. Park Sung-hoon of the People Power Party, a member of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee. KDI analyzed the impact of the 52-hour workweek on business performance—including employment, revenue, and labor productivity—broken down by industry and company size.
The state-run institute's analysis showed that manufacturers and small businesses that adopted the 52-hour workweek saw declines across all indicators: employment, revenue, and labor productivity. KDI attributed this to working hour regulations acting as a constraint on flexibly adjusting labor input.
Under the same regulation, service industries and large businesses responded differently. These businesses responded to working hour regulations by utilizing flexible work arrangements or increasing capital investment, and their business performance was found to be unimpaired.
KDI's research suggested that "it is necessary to encourage and promote autonomous working hour arrangements based on labor-management agreements, such as flexible work systems, in order to pursue working hour reductions and improved labor productivity together."
Rep. Park Sung-hoon said, "It has been confirmed that uniform working hour regulations do not affect all companies in the same way." He added, "Since the burden is concentrated on small and medium-sized manufacturers that lack manpower and capital resources, we need to consider flexible working hour systems that reflect the realities of different industries and company sizes."
