South Korea's Economy
Long Hours and Low Service Productivity
Why South Koreans have worked some of the longest hours in the rich world, the move to cap the work week, and the productivity gap between manufacturing and services.
South Koreans have long worked some of the longest hours among rich countries.
Hours
Average annual working hours in Korea have been among the highest in the OECD, though they’ve fallen over time.
The 52-hour week
In 2018, Korea cut the maximum working week from 68 hours to 52 hours (40 regular plus 12 overtime). Proposals in 2023 to allow more flexibility sparked backlash from young workers.
Productivity gap
- Manufacturing giants like Samsung and Hyundai are highly productive.
- Services and small firms have much lower productivity.
- Many workers are in small, low-productivity firms like restaurants.
Why services lag
- Regulation limiting competition.
- Small firms with little investment.
- Early retirement from big firms pushing people into small businesses like fried chicken restaurants.
Work-life balance
Long hours are linked to stress, low fertility and health problems.
A 52-year-old leaves a big company and opens a fried chicken restaurant with his savings. Competition is fierce, and he works long hours for modest income.
Korea's service sector has low productivity despite long hours.
- Koreans have worked some of the longest hours in the OECD.
- A 52-hour week limit took effect in 2018.
- Manufacturing is highly productive; services lag.
- Long hours harm health and family life.
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