Defense export boom runs into overtime rule hurdle

Employees assemble mass-produced KF-21 fighter jets for the Republic of Korea Air Force at Korea Aerospace Industries in Sacheon, South Gyeongsang Province, May 13. The KF-21 is Korea's first domestically developed supersonic fighter. Joint Press Corps

Korea’s booming defense exports are running into a new challenge as manufacturers call for greater flexibility on working-hour rules, arguing that labor shortages and production deadlines are becoming harder to manage under the current 52-hour workweek.

Defense companies say surging domestic and overseas orders have outpaced their ability to secure skilled workers, prompting the industry to seek broader use of the country’s special overtime system.

But the Ministry of Employment and Labor maintains that it has no plans to ease the current framework for the defense sector, saying similar demands are raised across a wide range of industries.

According to industry and government officials, major defense contractors recently met with labor ministry officials to explain the need for additional flexibility under the special overtime system, which allows employers to extend working hours beyond the statutory limit under limited circumstances with government approval.

Defense manufacturers argue that the problem is not simply a shortage of workers, but a shortage of skilled workers.

“Manufacturing is not an industry where companies can simply hire people and put them on the production line the next day,” an industry source said. “Workers need time to acquire the skills required for each production process, so it is difficult to respond immediately when orders suddenly surge.”

The source said relying on new hires alone could reduce productivity while increasing labor costs.

“In some cases, it may take two or three inexperienced workers to match the output of one skilled employee,” the source said. “That raises fixed costs while doing little to reduce the risk of delayed deliveries.”

The industry insists it is not seeking a permanent exemption from the 52-hour workweek but temporary flexibility to cope with unusually high demand.

“If companies knew the current level of demand would continue for the next 10 or 20 years, they would naturally expand production facilities and hire more permanent workers,” the source said. “The challenge is responding to a sudden and potentially temporary surge in orders.”

The industry source also noted that defense manufacturers face constraints that do not always apply to other industries.

“Defense companies rely heavily on a limited pool of domestic skilled workers because security requirements make it difficult to rely on foreign workers,” the source said.

The labor ministry, however, said it does not believe the defense industry should be treated differently.

“We have no plans to relax the current framework or revise the existing criteria for any particular industry,” ministry spokesperson Hong Kyung-eui said.

She said requests citing temporary spikes in orders, shortages of skilled workers and industry-specific circumstances are common across many sectors.

“Those concerns are not unique to the defense industry,” Hong said. “Whenever companies raise such issues, we also explain existing alternatives, including flexible working-hour arrangements.”

She added that extending working hours could not become a long-term solution.

“The broader question is how long industries can continue addressing these challenges simply by extending working hours,” Hong said. “They also need to look for other ways to improve productivity.”

The Defense Acquisition Program Administration (DAPA) acknowledged that some manufacturers may be facing temporary bottlenecks but said the situation varies considerably across the industry.

“The circumstances differ not only from company to company but also from one production line to another,” a DAPA official said. “Some production lines for export products such as the K9 self-propelled howitzer or Chunmoo multiple rocket launcher may experience concentrated workloads, but it would be difficult to characterize this as an industry-wide issue.”

The official added that decisions on special overtime ultimately fall under the labor ministry's jurisdiction.