One of the country’s major commercial banks, the KB Kookmin Bank, has pioneered in this venture by announcing that it has held discussions with its labour union and agreed on introducing a 4.9-day workweek, which would allow workers to leave office early on Fridays
South Korean banks have emerged as a prototype for shorter work hours as the country tries to move toward a four-and-a-half-day workweek, a relief for employees in the world’s busiest labour market.
One of the country’s major commercial banks, the KB Kookmin Bank, has pioneered in this venture by announcing that it has held discussions with its labour union and agreed on introducing a 4.9-day workweek, which would allow workers to leave office early on Fridays.
While the agreement is still awaiting final approval, KB Kookmin’s decision aligns with recent moves by several of its competitors that have already finalised similar arrangements. NH NongHyup Bank is preparing to launch the scheme within the first quarter of the year, while Shinhan Bank and Hana Bank are currently in the final stages of negotiations, with plans to implement the program as early as this month.
How will it work?
After the system is implemented, office computers will automatically shut down at 5 pm on Fridays, one hour earlier than the usual time. An official from one of the banks that is moving ahead with this new system told The Korea Herald that wages will not be affected due to the shorter work hours.
The move follows efforts made by the South Korean banking sector that have been pushing for shorter working hours, including proposals to reduce the standard workweek from 40 hours to 36 hours.
They have also proposed late branch opening times to promote a more family-friendly work culture and ramp up productivity amid Korea’s low birthrate and slowing growth.
The movement to reduce labour hours intensified following a pledge by President Lee Jae-myung to implement a 4.5-day workweek. This initiative is designed to lower South Korea’s average annual working hours to approximately 1,700 by the year 2030, aligning the nation with the OECD average.
Currently, South Korea remains one of the most overworked economies in the world, with an average of 1,879 working hours per year; its workforce clocks in over 100 hours more than its international peers in the OECD.
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