Korea’s ‘Premium Friday’

The government announced a set of measures to boost consumption Thursday, but the package consisted mostly of proposals that do not reflect the realities of Korean workers who are struggling with stagnant incomes and soaring taxes.

Among the proposals, the one that earned the most scorn from workers is the expansion of leisure time by designating one Friday of the month as “family day.” This envisions letting employees working 30 minutes longer from Monday through Thursday and then getting off work two hours earlier on Friday.

The idea is borrowed from Japan’s “Premium Friday” campaign which began Friday to curb excessive work hours and spur consumption. To spread the campaign, even Prime Minister Shinzo Abe is reportedly planning to finish work early on Friday and engage in cultural activities, including visiting temples and attending concerts.

The idea sounds good on paper, but is unrealistic because it requires a huge shift in Korean office culture. The question is whether much of Korea’s business sector will be willing to accommodate the proposal since many companies still retain rigid work practices.

Koreans work the longest hours among OECD countries at a time when working long hours is still considered a merit. Therefore the proposal to expand leisure time is not really applicable to Korean workplaces, where many workers are already forced to work beyond 6:00 p.m.

Expanding leisure time cannot be a fundamental solution to revive spending among Koreans who are hesitant to spend but not because they lack time. Rather, the fact is many people just don’t have enough money for shopping or leisure activities after they take care of their basic needs with their limited salaries such as credit card bills, rent, education and childcare.

Rather than half-baked measures to spur spending, the government should come up with fundamental solutions such as policies to expand decent jobs and raise household incomes.