[ECON & BIZ] Economic pledges in S. Korea’s 2025 presidential race: what candidates propose on labor and housing

Last week, we covered economic visions the candidates have for the next five years when it comes to future growth and trade policies.

In this week's focus, we shed light on those related to labor reform and housing shared by the major three contenders.

Our economics correspondent Lee Soo-jin has the details.

South Korea's presidential election is just around the corner, and each candidate’s economic pledges are drawing increased attention from voters.

This week, we look closer at candidates’ labor reform and housing pledges.

The candidates are aiming to improve labor conditions to win the votes of the many who wish for a better work-life balance.

To do so, the two frontrunners have proposed a 4-point-5-day workweek.

The current standard workweek is five days, with most full-time workers logging 40 hours from Monday to Friday, and a legal maximum of 52 hours per week.

The 5-day workweek was introduced with a 2003 revision to the Labor Standards Act and fully implemented nationwide by 2011, and now attention is on whether a 4-point-5 workweek will become a reality this year.

So what does each candidate's 4-point-5 workweek look like?

Democratic Party candidate Lee Jae-myung has proposed reducing the standard workweek from 40 to 36 hours by cutting Friday afternoons, without reducing wages.

The proposal also includes providing incentives for companies to adopt the new schedule, and has the long-term goal of eventually transitioning to a 4-day workweek.

"South Korea’s total working hours are too long, about 200 hours more than the OECD average. Longer hours no longer mean higher productivity; efficiency and creativity are now key."

People Power Party candidate Kim Moon-soo has proposed a 4-point-5 workweek that maintains the current 40-hour workweek by redistributing working hours across the week.

Under this plan, employees work one extra hour from Monday to Thursday, and finish earlier on Friday, creating a shorter workday without cutting total weekly hours.

He has also said that he supports granting exemptions to the 52-hour workweek limit for the semiconductor sector.

"I will replace the rigid working hours system with a more flexible one, cut corporate and inheritance taxes significantly, and drastically reform regulations to help businesses thrive."

Reform Party candidate Lee Jun-seok has strongly criticized the 4-point-5-day workweek proposal that reduces working hours without cutting wages, calling it unrealistic.

He has instead pledged labor reforms that include giving local governments the authority to adjust the minimum wage to revitalize regional economies.

Housing is a key issue for all three candidates, as the country's residence crisis has fueled voter concern and also contributed to the country’s low birth rate.

While they all aim to increase supply, their approaches differ, here’s how.

The key theme of Lee Jae-myung's housing proposal is "New Town."

South Korea’s first New Town project from the late 1980s, which includes Bundang and Ilsan, now faces aging infrastructure that he plans to rebuild.

Lee also pledges to cut red tape for Seoul’s downtown redevelopment, and to develop a 4th-generation New Town with more quality public housing.

The key theme of Kim's proposal is "youth."

Kim’s “3•3•3” Youth housing supply plan offers support for up to 9 years, 3 years after marriage, and 3 years each after the first and second child.

His proposal also includes supplying 200-thousand homes for young adults, newlyweds and families, and more housing for single-person households.

The key theme of Lee Jun-seok's proposal is "life stages."

He plans to increase the supply of 59㎡ homes by promoting the redevelopment and building of small-unit housing.

Lee pledged to promote high-density urban development, citing strong housing demand, and proposed housing tax cuts tailored to newlyweds seeking smaller homes, growing families needing more space, and seniors looking to downsize.

Though each candidate’s vision differs, the emphasis on their economic pledges highlights the critical role the economy plays in this election.