Shinsegae Group announced that it will shift to a 35-hour work week from January 2018. The current statutory working hours in Korea is set at 40 hours per week. With the new work hour system, workers and executives of the group will work 7 hours per day, with workers able to choose their start and finishing hours in accordance with the specific characteristics of their jobs. One can work from 8 AM until 4 PM, or from 10 AM until 6 PM. For workers in supermarkets, new shift schedules will be set to reduce every worker’s working day by 1 hour.
However, no wage reductions will be made. The group will maintain the current wage levels and implement an annual wage increase as well, explaining that these moves will represent a paradigm shift in working conditions in Korea, which are currently characterized by long hours and overtime. The group hopes to facilitate a more relaxing lifestyle, and establish a better organizational culture of rest and productivity.
The group’s decision is quite remarkable, since the majority of Korean companies are having difficulties reducing work hours. As the Shinsegae’s working hours have been reduced to levels similar to those in advanced OECD nations, the group is planning to increase productivity by establishing an advanced organizational culture. A Shinsegae spokesperson stated, “The working hour reduction is the result of a long-term project that the company began 2 years ago. For stores such as E-Mart, operating hours will be reduced so they can share in the working hours reduction and in the growth of their partner companies.”