SEOUL – Doubts have been raised over Samsung Group’s latest decision to make the executives of its key tech affiliates – Samsung Electronics, Samsung SDI, Samsung SDS and Samsung Display – work an extra day per week as part of the group’s emergency measures to tackle ongoing business uncertainties.

Critics pointed out that the six-day work week for executives is “outdated and inefficient”, and that it lies in contrast to other local Big Tech companies that are following the global trend of adopting a four-day work week in the pursuit of an improved work-life balance for employees.

Some even worry that the move may end up dampening the overall morale of employees.

“The whole world is already following the trend of moving from a five-day work week to a four-day work week, but (Samsung is now) going completely against the global paradigm,” Mr Oh Il-sun, director of Korea CXO Institute, told The Korea Herald.

“I’m not sure if it is the decision made by (Samsung chairman) Lee Jae-yong or the executives, but I think it was a bad move.”

Executives from Samsung C&T, Samsung Heavy Industries and Samsung E&A have already moved to a six-day work week. Financial affiliates of Samsung Group, including Samsung Life Insurance, are also reportedly considering implementing the longer work week soon, said industry sources.

Samsung Electronics has estimated that its first-quarter operating profit would hit 6.6 trillion won (S$6.5 billion), up 931.3 per cent year on year, signalling a dramatic resurgence in its semiconductor business on rebounding demand for memory chips.

Sources believe that Samsung, however, came up with the idea to increase the work week as it believes that the real crisis has begun and that now is the time to renew the overall atmosphere of the group’s management.

In 2023, the tech giant posted a deficit of 15 trillion won in the device solutions division, which is in charge of the company’s semiconductor business, due to worsening business conditions.

The intensifying conflict between Iran and Israel, and the continued war in Ukraine have also spurred a jump in exchange rates and oil prices.

Additionally, over 2,000 members of a Samsung Electronics labour union, or 21 per cent of the company’s workforce, held a rally last week to pressure the management to improve their working conditions in terms of wages, bonuses and paid holidays.

The recent general election result also became a hurdle for Samsung as it is believed that Bills that had been expected to provide tax benefits or deregulation for companies have lost their momentum, sources added.

“(Samsung chairman Lee) has shown soft leadership, contrary to previous owners, but with Taiwan Semiconductor Manufacturing Co (TMSC) outpacing Samsung in market value and profit, as well as the various crises surrounding the Korean conglomerate, it appears that Mr Lee decided to come up with a solution to regain discipline,” said Professor Hwang Yong-sik of Sejong University’s college of business administration.

“It’s a way of trying to tighten the slack. This can be seen as a symbolic decision that signals Samsung’s party is over,” the expert said. “Samsung has to do something to recapture the past 10 years of growth and success for TSMC, and this can also be seen as a display to the public of (the group’s desperation).”

It is questionable whether Samsung’s six-day work week for executives will be effective in saving the country’s No. 1 conglomerate from the crisis it faces, according to Mr Oh.

“If the business environment itself is unfavourable, there is nothing you can do about it. It is a leader’s role to suggest strategies and alternatives to overcome a crisis. But if the six-day work week had been a solution to overcome the emergency, (Samsung) would have done it a long time ago. So the methodology itself is dubious,” the institute director said.

Experts say there is a high possibility that other local conglomerates will follow suit with Samsung’s workday extension plan.

In February, SK Group resumed biweekly Saturday meetings for top executives from its affiliates for the first time in 24 years since it adopted the five-day work week back in July 2000.

Other conglomerates such as Hanwha, GS, HD Hyundai and Doosan have not yet taken any special measures but are reportedly closely monitoring volatile global economic situations, including exchange rates, interest rates and inflation, sources said. THE KOREA HERALD/ASIA NEWS NETWORK