Former Bank of Korea Governor Rhee Chang-yong unveiled his first post-retirement research findings on the 6th. The former governor presented the study, titled *‘How Should the Working Hours System Be Changed?’*, co-authored with Oh Sam-il, head of the bank’s employment research team, at a forum hosted by the National Future Strategy Institute’s Population Cluster at Seoul National University in Gwanak-gu, Seoul. The research extends his previous “structural reform series” initiatives, arguing that rigid working hours hinder national competitiveness. Rhee, who completed his term in April, now serves as a special-appointment professor at Seoul National University.
The research team’s analysis found that while the 52-hour weekly work cap reduced overtime and maintained wages overall, its negative effects were concentrated among low-income workers. Employees in the bottom 20% income bracket saw a 16% decrease in both overtime hours and pay, resulting in a 1.3% reduction in total wages. The team noted, “The shock of the 52-hour cap disproportionately affected low-income workers with weaker bargaining power.”
Rhee argued for relaxing the 52-hour cap for white-collar professionals, emphasizing autonomy and focus. He stated, “For white-collar workers in global competitive environments—where performance measurement is clear, engagement matters more than hours, and intensive work is necessary—regulations should be eased to grant autonomy. This is essential to enhance Korea’s competitiveness.”
The study revealed that in companies with high performance-based pay, the 52-hour cap actually lowered productivity. This suggests that rigid weekly hour limits could undermine performance-driven pay systems by diluting incentives for high achievers.
Regarding proposals to shorten the legal workweek to 4.5 days, the research team expressed skepticism. They highlighted, “Except for France, no major economy has a legal workweek below 40 hours. Establishing a culture of proper rest, such as increasing the utilization rate of paid leave, may be more effective.”
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