[Editorial] Japan Allows Overtime, While Korea Is Held Back by the 52-Hour Workweek

Japan's Ministry of Health, Labour and Welfare will ease blanket restrictions on overtime work starting next month. Until now, even when labor and management agreed to a special clause allowing extended work of less than 100 hours a month, labor standards inspectors had guided companies to keep overtime within 45 hours a month whenever possible. Going forward, companies that sign such special clauses will effectively be able to work nearly 100 hours of overtime a month. Looking at Japan's labor market policy, it is hard not to wonder why Korea insists on such a rigid approach.
Prime Minister Sanae Takaichi's resolve played a key role in the decision. Since taking office, she has promoted labor-hour deregulation as a core labor reform task under the banner of a "strong Japan." The move reflects demands from the business community, including Keidanren, which has argued that blanket overtime rules weaken corporate activity. The prime minister's determination, along with support from industry and workers, drove the decision.
Japan's economic situation is that urgent. As competition intensifies in semiconductors and other advanced industries, the government judged that labor-hour restrictions must be loosened, and labor and management agreed. The decision also reflects industry calls for bold policies that would allow firms to use the workforce they need, when they need it, in a labor market narrowed by low birthrates and an aging population.
Japan is not the only country taking this approach. Countries competing in advanced technology development, especially in semiconductors, are moving aggressively to make labor hours more flexible. China's growing share of the global market in advanced industries is driven not only by stronger technological competitiveness, but also by a work environment that allows more flexible labor-hour management than Korea's. Taiwan and the United States are doing the same.
Compared with these moves by major competitors, Korea appears far too complacent. Other countries are trying to do whatever they can by joining forces among labor, management, and government, but Korea is doing the opposite. The government has been lukewarm on labor-hour flexibility, while labor unions have echoed that stance and opposed it. A proposal to ease the 52-hour workweek on an exceptional basis, at least for advanced research personnel, has been stuck in limbo for years.
There has been some talk of easing the rules recently, especially with the southwestern region semiconductor mega-project, but there is still a long way to go. The Minister of Trade and Industry has publicly raised the need to expand exceptions to the 52-hour workweek, including a white-collar exemption, citing the competitiveness of advanced industries. However, the Ministry of Employment and Labor (MOEL) has held firm to its position that "worker protection comes first," setting up a clear conflict.
It is hard to find another country where government ministries look so disjointed. Caught in interagency disagreement, the discussion has gone nowhere and remains stuck in place. Why do those who oppose labor-hour flexibility fail to see the life-or-death competition for semiconductor dominance unfolding before them?
Meanwhile, rival countries are already moving far ahead. The sense of urgency is the same for Japan and Korea. If either country shows even a moment of complacency, it could quickly fall behind in the competition. The government and labor unions should learn from Japan and make a decisive choice.