52-hour workweek feared to impede new product development

By Baek Byung-yeul

Korea's statutory maximum working hours have been shortened to a maximum 52 hours a week from 68 hours starting this month, but industry watchers say the new policy may hamper product development, company officials said Wednesday.

The new 52-hour workweek is comprised of 40 standard hours and an additional 12 hours overtime. It must be implemented by businesses employing more than 300 workers. First-time violators will be given six months to correct the violation while companies that still fail to comply will face criminal prosecution.

While the government believes the new workweek will benefit employees, there has been speculation the regulation would place an undue burden on businesses.

Samsung Electronics is reportedly considering extending its new smartphone and TV products development period from three to six months.

Given the Korean tech giant has tightened its procedures on smartphone development to compete with global IT giant Apple and Chinese fast followers, industry watchers express concerns that Samsung may be dragged down by the new workweek.

Another electronic giant LG Electronics is trying to be as flexible as possible in dealing with the new working hour system, but the company is also considering extending project terms.

“Each division has different working conditions, so we are adopting the new system by increasing the flexibly of working hours,” an LG official said. “For instance, if an employee works late, he or she will work less the next day to fit into the new system.”

The official also said they will extend the period of projects if needed. “If there is a division that needs a compulsory core work time, it can extend its project period.”

Game developers are also worried over reduced working hours as it may disrupt the processing of software development.

The country's leading game company Netmarble introduced the 52-hour maximum workweek in February last year but the company didn't produce a single new title for five months from November to April this year.

It is known that employees of game companies have been working in “crunch mode,” which refers to working excessively long hours to meet a deadline. In 2016, an employee at Netmarble's subsidiary company died and his death was recognized as a work-related industrial accident for the first time.

Since then, big game firms such as Nexon, Netmarble and NCSOFT have been adopting flexible working hour programs so that employees can adjust the time they come and leave the office.

“Korean game companies have shown their competitiveness in the field with their speedy development process. But under the new law, it will be inevitable for them to lose their best weapon,” an expert in the game industry said. “Look at Chinese firms. In terms of creating game software, they might be behind the times, but they are at the front line at following the latest in the industry.”

System integration (SI) companies including Samsung SDS, LG CNS and SK C&C had adopted flexible working hours before the introduction of the new workweek.

“Samsung SDS adopted the flexible working hour program in 2016. We are required to work at least four hours a day and fill 40 hours each week, so we are not worried by the new system,” a Samsung SDS official said.