Shorter workweek and overtime ban raise costs that could erode competitiveness unless hourly productivity surges

South Korea risks undermining its export competitiveness as the Lee Jae-myung administration pushes ahead with labor reforms that increase costs, shorten working hours and extend the retirement age without guaranteed productivity gains.

While the stated objective is to raise living standards and long-term efficiency, the transition imposes structural pressures that large firms can navigate but small and medium-sized enterprises (SMEs) will likely struggle to adhere to.

South Korea risks undermining its export competitiveness as the Lee Jae-myung administration pushes ahead with labor reforms that increase costs, shorten working hours and extend the retirement age without guaranteed productivity gains.

While the stated objective is to raise living standards and long-term efficiency, the transition imposes structural pressures that large firms can navigate but small and medium-sized enterprises (SMEs) will likely struggle to adhere to.

Get your
KoreaPro
subscription today!

Unlock article access by becoming a KOREA PRO member today!

Unlock your access
to all our features.

Standard Annual plan includes:

• Receive full archive access, full suite of newsletter products

• Month in Review via email and the KOREA PRO website

• Exclusive invites and priority access to member events

• One year of access to NK News and NK News podcast

There are three plans available:
Lite, Standard and
Premium.

Explore which would be
the best one for you.

Explore membership options

© Korea Risk Group. All rights reserved.
No part of this content may be reproduced, distributed, or used for
commercial purposes without prior written permission from Korea Risk
Group.