Will Banks, Hospitals, Delivery and the Stock Market Close for May 1 Labor Day?

By Lee Dong Geon Posted : April 29, 2026, 14:21 Updated : April 29, 2026, 14:21
With May 1 Labor Day designated a public holiday starting this year, more people are checking whether banks, schools, hospitals, delivery services and the stock market will operate. [Photo=Yonhap]

Interest is growing over whether workplaces and essential services will close for May 1 Labor Day. Starting this year, Labor Day is a statutory public holiday, extending the day off to public-sector workers such as civil servants and teachers. That has prompted more people to confirm operating schedules for banks, schools, hospitals, parcel delivery and the stock market.

The Ministry of Personnel Management said April 28 that the Cabinet approved a partial revision to the regulation on public holidays for government offices, designating Labor Day and Constitution Day as official holidays. The move follows earlier legal revisions, meaning May 1 Labor Day and July 17 Constitution Day will be treated as statutory public holidays starting this year.

Labor Day was set in 1963 as “Workers’ Day” and has been observed as a paid holiday for private-sector employees. Civil servants and teachers, who are not covered by the Labor Standards Act, were excluded, fueling fairness concerns. The name was changed to “Labor Day” in November, and this year’s public-holiday designation further expands coverage.

This year, Labor Day falls on a Friday. With the weekend of May 2-3 and Children’s Day on May 5, workers who take one day of leave on May 4 can take five consecutive days off, increasing interest in how to use the early May break.

Not all businesses and facilities will close. Government offices and schools will observe the holiday, but hospitals, pharmacies, big-box retailers and restaurants may operate depending on their policies. For medical services, operating hours can vary by facility, except for emergency rooms, on-duty pharmacies and designated holiday clinics, so visitors are advised to check in advance.

Bank branches typically close on public holidays, though some services may remain available through mobile and online banking and ATMs. The securities market also generally closes on public holidays, so investors with trading or withdrawal plans are advised to confirm trading availability and settlement schedules ahead of time.

Parcel delivery requires extra attention. Although Labor Day is now a statutory holiday, pickup and delivery schedules can differ by courier, logistics center and online retailer. Some companies are separately announcing cutoff dates and staggered delivery plans to reflect the Labor Day and Children’s Day period, and customers are advised to check schedules before ordering fresh food or urgent items.

Holiday work pay is also drawing attention. Article 56 of the Labor Standards Act requires employers to pay at least an additional 50% of ordinary wages for up to eight hours of work on a holiday, and at least an additional 100% for hours beyond eight.

For example, an employee who works eight hours on Labor Day, a paid holiday, is entitled to paid-holiday wages, wages for the hours worked and the holiday premium. For salaried workers, paid-holiday pay is often already included in monthly wages, so the method for calculating additional pay may differ from hourly or daily wage systems. Because calculations vary by work arrangement and pay structure, employees should review workplace rules and their employment contracts.

Another point of confusion is the difference between a “substitute public holiday” and “holiday substitution.” Labor Day and Constitution Day are included in the substitute-holiday system when they fall on a weekend or overlap with another public holiday. However, the Ministry of Employment and Labor says employers are not allowed to have employees work on Labor Day and then unilaterally designate another day off in its place, because Labor Day is specified as a paid holiday on May 1 under the Labor Standards Act.

In other words, if Labor Day falls on a weekend, an additional substitute holiday may be created, but an individual workplace cannot replace the May 1 holiday by assigning a different day off at its discretion.

Experts advise workers to confirm in advance whether they are scheduled to work, how holiday pay will be calculated, and whether key institutions will close. Medical visits, financial transactions, parcel deliveries and stock trading may be affected depending on how the public holiday is observed.




* This article has been translated by AI.

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