Discussions regarding an exception to the 52nd-hour workweek system for advanced industries such as semiconductors have moved to the legislative stage, despite the turmoil within social dialogue between labor and management.
This follows the ruling party’s introduction of a Metagame Special Zone Act containing labor exceptions, amid industry and Ministry of Trade, Industry and Energy emphasizing the need for flexibility in working hours for research and development (R&D) personnel.
Although an agreement between labor and management has not yet been reached, discussions on improving the working hour system to ensure the successful establishment of metagame special zones are expected to accelerate.
According to political circles on the 20th, Democratic Party of Korea lawmaker Park Sang-hyuk introduced the "Special Act on Designation and Operation of Metagame Strategic Industry Special Zones for Local-Led Growth" as a representative bill on that day. The Democratic Party plans to introduce a separate bill excluding labor exceptions and conduct a joint review of both bills to prepare a final draft.
The background behind industry demands for working hour flexibility lies in the characteristics of semiconductor R&D (research and development). The argument is that process improvement and product verification can concentrate work during specific periods, requiring personnel deployment at necessary times to increase development speed.
According to a survey conducted by the Federation of Korean Industries on 468 companies in the national advanced strategic technology sector last July, 50.6% of responding companies cited working hour flexibility for R&D personnel (white-collar exemption) as the labor regulatory exception needed for special zones.
The Ministry of Trade, Industry and Energy has also emphasized the need for institutional improvement. Minister Kim Jung-gwan stated at the Gwanhoun Forum on August 6 last month that "the 52nd-hour workweek system needs to be reviewed," highlighting the necessity of working hour flexibility to secure competitiveness in advanced industries.
The intent is that metagame special zones require institutional support reflecting industrial characteristics to lead not only to investment attraction but also to R&D and technology commercialization outcomes.
This is also closely linked to the successful promotion of the Honam semiconductor industrial complex. In addition to securing land and infrastructure such as power and water, conditions that allow for timely deployment of R&D personnel can influence corporate investment and technology development. Establishing a system that functions in actual industrial sites, beyond special zone designation and investment support, is cited as a key task.
The Ministry of Employment and Labor maintains its position that the introduction of exceptions will be decided through social dialogue. Minister Kim Young-hoon stated during the National Assembly audit on the 13th last month that "for the success of mega special zones, corporate productivity and protection of workers' right to health must be harmonized."
The one-point social dialogue initiated in September last year by proposal from Kim held its fifth practical negotiation body meeting on that day. The Ministry judges that both labor and management sides are sufficiently presenting their respective positions.
However, continuing dialogue is separate from reaching an agreement. The two major labor federations criticized the ruling party’s introduction of the exception bill and demanded immediate withdrawal.
The Korean Confederation of Trade Unions criticized, "Emphasizing social dialogue and cooperative governance on the surface while pushing for legislation on labor exceptions without completing consultations with the labor sector behind the scenes is a double-faced behavior." Although labor-management-government meetings have been held multiple times, core disagreements surrounding the introduction of exceptions remain unresolved.
In future National Assembly reviews, key issues will include whether to limit the scope of exception application to core R&D personnel or high-income professionals, and how to arrange additional compensation for overtime work and health protection mechanisms.
It is judged that the possibility of introducing exceptions in some form is high, given that metagame special zones must secure both working hour flexibility needed in industrial sites and worker protection to establish themselves as hubs for investment and technology development in advanced industries, including the Honam semiconductor complex. The government also shares the view on the necessity of introduction.
in ECONOMY
