On August 29, 2003, the Korean National Assembly passed a bill mandating the gradual shortening of workweeks. The bill will gradually reduce average working hours from 44 hours a week to 40 hours a week, removing the requirement to work half-days on Saturday. The new law will be put in effect starting from July 2004 and will continue in stages until 2011. Larger companies will be the first required to implement the new legislation. Companies with 1,000 or more employees will have to begin the five-day workweek system beginning in July 2004. Smaller companies with 20 to 50 employees will begin the five-day workweek schedule by July 2008, and companies with less than 20 employees will not have to implement the new system until July 2011.

Already, small and medium sized companies in Korea have expressed concerns regarding the new legislation. Many of these companies have protested the new bill and have demanded the government establish greater support systems for smaller companies. Many small and medium sized companies in Korea expect the new five-day workweek requirement to severely increase their costs and decrease productivity. Representatives from these companies claim that current average working hours for persons employed at small and medium sized companies are 55 hours a week, a reduction to 40 hours a week would severely affect these companies´ future. According to a report by the Korean Federation of Small Business, the introduction of the five-day workweek is expected to increase labor costs by 20% in smaller firms.

In response, the Korean government announced a series of supports for small and medium sized companies as they transition to five-day workweeks. These include tax breaks for facility investments as well as subsidies for labor costs. However, companies in Korea are still demanding greater support from the government to offset expected losses.

Nevertheless, the overall reaction to the government´s institution of five-day workweeks has been positive. The shortened work hours will allow workers in Korea greater time for leisure activities, thus, raising their quality of life. The new system is also expected to stimulate the economy by providing greater employment opportunities related to leisure activities. With people no longer working on the weekends, more will pursue activities such as tourism and outdoor recreation, creating more jobs related to these pastimes.