Catherwood LibraryILR School

South Korea’s proposal to implement a 4.5-day workweek is drawing sharp criticism from business groups concerned about rising costs and lagging productivity. The plan, a key initiative of President Lee Jae Myung, aims to boost work-life balance and address demographic challenges by cutting weekly hours without reducing pay. Supporters say shorter hours could improve quality of life and tackle low birth rates, while employers warn the move is premature given Korea’s labor productivity remains well below that of advanced economies. Small businesses and industry leaders argue that without gains in efficiency, the shift could widen the gap between wages and output. A new bill and task force are expected to shape the roadmap by year’s end.