Navigating the Tension Between Work Regulations and Innovation in South Korea’s Deep Tech Sector
In the fast-paced world of deep tech, innovation is the ultimate currency. As industries like AI, semiconductors, and quantum computing continue to advance, the pressure to stay ahead is mounting. For many companies, this pressure has led to increased workloads and more intense work cultures. South Korea, a global leader in technology, is grappling with a unique challenge: balancing workplace regulations with the demands of competing on the world stage.
At the heart of this issue is South Korea’s 52-hour workweek policy, which was fully implemented on January 1, 2025, after originally being introduced in 2018 for large companies. This policy caps the standard workweek at 52 hours, with penalties for employers who violate these rules, including fines and even imprisonment for executives. While this policy aims to protect workers and improve work-life balance, it has sparked debate in the tech sector, where the nature of work often requires flexibility and long hours, especially during critical phases of research and development (R&D).
Tech investors and founders in South Korea are raising concerns about how the 52-hour workweek limit affects their ability to compete globally. “The 52-hour workweek is indeed a challenging factor when making investment decisions in deep tech sectors,” said Yongkwan Lee, CEO of South Korea-based venture capital firm Bluepoint Partners. “This is particularly relevant when investing in globally competitive sectors like semiconductors, artificial intelligence, and quantum computing. Labor challenges are particularly complex in these sectors, where founders and teams often face intense workloads and long hours during critical growth phases.”
The 52-hour workweek is not the only regulation impacting the tech industry. South Korea also introduced a special extended work program earlier this year, allowing employees to work up to 64 hours per week with their consent and government approval. For deep tech sectors like semiconductors, approval periods were temporarily extended from three to six months. However, local media reports suggest that only a few companies took advantage of this program. Looking ahead, the government plans to scale back these special exemptions and tighten working-hour regulations further, even as some lawmakers argue that the current guidelines are sufficient.
For deep tech companies, where innovation often requires intense focus and flexibility, the rigid 52-hour limit can feel restrictive. Bohyung Kim, CTO of LeMong, a South Korean startup backed by LG Uplus, explains, “Engineers work to find practical solutions to complex problems. Our work isn’t about completing predefined tasks within fixed hours. It’s about using creativity and deep focus to solve challenges and create new value. When an idea strikes or a technical breakthrough happens, the concept of time disappears. If a system forces you to stop at that moment, it breaks the flow and can actually reduce efficiency.”
This sentiment is echoed by Huiyong Lee, co-founder of LeMong, who believes that a monthly average would be more practical than a strict weekly limit. “For companies like ours, intensive development efforts are often required for approximately two weeks prior to a product launch, after which the workload eases once the product stabilizes,” Lee said. “A system with monthly flexibility would allow us to work around 60 hours per week before a launch and 40 hours per week afterward, maintaining an average of 52 hours while ensuring operational efficiency.”
Despite the challenges posed by the 52-hour workweek, some investors downplay its impact on investment decisions. One Seoul-based venture capitalist noted, “At the moment, there don’t appear to be any major concerns. While it’s always difficult to predict how labor regulations or monitoring practices might evolve, many venture companies today do not strictly track employees’ working hours. To my understanding, there’s currently no requirement for companies to submit formal evidence proving that employees stay within the 52-hour weekly limit.”
However, this lack of strict enforcement may not fully address the underlying issues. The real challenge lies in the nature of deep tech work, which often requires long hours and intense focus during critical phases. “High-performing team members often tend to put in longer hours, but rather than seeking rewards for the extra time, these top performers focus on achieving results and advancing quickly within the company,” said Kim. “Engineers are far more motivated to dive in when their efforts are recognized, whether through performance bonuses, stock options, or acknowledgment of technical contributions.”
To better understand the global context, it’s worth comparing South Korea’s 52-hour workweek with other major tech hubs. In Germany, the U.K., and France, standard workweeks range from 33 to 48 hours, while in Australia and Canada, the standard workweek is 38 and 40 hours, respectively. In the U.S., the Fair Labor Standards Act (FLSA) sets a standard 40-hour workweek, but there is no limit on total hours, and overtime pay is required for nonexempt employees. In China, the standard workweek is 40 hours, with higher pay for overtime on weekends and public holidays. Japan and Singapore have slightly longer workweeks, with Japan’s 40-hour standard and Singapore’s 44-hour workweek, both with limits on overtime.
South Korea’s 52-hour cap sits squarely in the middle, stricter than the U.S. and Singapore but more flexible than much of Europe. For deep tech founders competing globally, the question isn’t just about the number of hours worked—it’s about whether rigid weekly limits can accommodate the intense, uneven workflows that characterize early-stage R&D.
The debate over work hours in South Korea’s tech sector highlights a broader tension between protecting workers’ rights and fostering innovation. While regulations like the 52-hour workweek are crucial for ensuring fair labor practices, they must also be flexible enough to accommodate the unique demands of deep tech industries. As the global race for technological dominance intensifies, South Korea will need to find a balance that supports both its workforce and its competitiveness on the world stage.
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