South Korean SMEs Cut Working Hours to Attract Young Talent

A growing number of small and medium-sized enterprises (SMEs) in South Korea are shortening working hours as a strategy to attract and retain young talent. This shift marks a departure from the traditional work culture that often equated long hours with dedication and productivity.

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We are not going to achieve results just by sitting in the office for a long time. I hated the workplace culture where people couldn't leave work due to fear of their superiors, so I considered reducing working hours from the beginning of the company's founding.

Display Hub, a manufacturer of electronic displays, recently reduced its office staff's workweek from 40 to 35 hours, implementing a 7-hour workday. The company also offers an "Family Love Day" on the last Friday of each month, allowing employees to leave two hours early. Company CEO Kim Dong-hyeop stated that long hours don't necessarily equate to results and that he wanted to move away from the culture of employees feeling pressured to stay late. The company is also exploring replacing fixed overtime pay with compensation based on actual hours worked, aiming to discourage unnecessary overtime.

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There was a time when working overnight was boasted as proof of hard work. But that is a culture that should be avoided now. We are trying to give field personnel more time to rest and prepare by operating them more flexibly than other companies.

These efforts come as SMEs recognize the difficulty in attracting younger generations with conventional work practices. While large corporations have explored remote work, staggered hours, and 4.5-day workweeks, SMEs are now beginning to adapt their working time systems. Display Hub is also implementing policies like early departures for finishing work ahead of schedule and offering bonuses for completing field tasks ahead of deadlines, encouraging efficiency.

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Young employees these days don't accept the way of working overnight like before. When they know they can leave early if they finish work quickly, employees try to work more efficiently.

Government initiatives, including workplace innovation consulting and work-life balance support programs, aim to encourage SMEs to adopt shorter working hours. However, the adoption of flexible work arrangements, such as remote work and staggered hours, remains significantly lower in SMEs compared to larger companies. Experts emphasize that successful implementation requires a holistic approach, adapting flexible work models to specific industry and job requirements rather than a one-size-fits-all solution, and fostering a supportive organizational culture.

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When wages systems, work styles, and organizational culture change together, reducing working hours can take root in the field. We will continue to discover feasible models tailored to the characteristics of each industry.