Samsung Group, South Korea’s technology giant, has gone into emergency mode, introducing a six-day workweek for its executives in response to a confluence of challenging economic factors. The shift comes as Samsung faces a weakening Korean won, escalating oil prices, and mounting borrowing costs, among other pressures.
Executives from across the Samsung Group will be required to work either Saturday or Sunday in addition to their regular five-day workweek, as reported by Samsung Group officials. This policy adjustment is a direct reaction to the underperformance of major divisions, including Samsung Electronics Co., in 2023. The shift aims to ensure top management can review and adapt business strategies in the face of economic turbulence and geopolitical risks.
“Given that our major divisions’ performance fell short of expectations in 2023, we are implementing a six-day workweek for executives to evoke a sense of crisis and make every effort to overcome it,” explained a Samsung Group executive.
Key sectors within Samsung Group, including Samsung Display Co., Samsung Electro-Mechanics Co., and Samsung SDS Co., are expected to follow the new six-day workweek policy immediately, with other subsidiaries like Samsung Life Insurance Co. likely to join in the near future. It’s notable that while executives face increased workloads, employees below management level will continue with the traditional five-day workweek, which Samsung instituted in 2003.
The trigger for this emergency mode includes Samsung Electronics’ substantial operating loss of 15 trillion won ($11 billion) in its core semiconductor business in 2023. Although there are signs of improvement with preliminary operating profits increasing over tenfold in the first quarter of 2024, the company remains cautious due to the volatile Korean won, rising oil prices, and political uncertainties stemming from the upcoming U.S. presidential election.
This move mirrors similar steps taken by other Korean conglomerates. SK Group, another major South Korean energy and telecommunications conglomerate, reintroduced Saturday meetings for its executives in January 2024. This follows their transition to a five-day workweek in July 2000. The energy sector, facing competition from Chinese oversupply, also sees a tightening of work schedules.
As Samsung navigates this complex landscape, the six-day workweek is seen as a temporary but necessary measure to ensure resilience and adaptability in a challenging business environment. For more information, visit KED Global.