Rival countries ease work hour rules... Business groups say 'dialogue is good, but action must move faster'

As labor exemptions under the Mega Special Zone Special Act move to the social dialogue table, business circles are focusing their attention on the pace of discussions. This is because as China's accelerates and competing nations relax working hour regulations, delaying further will burden competitiveness in advanced industries.

According to business sources on the 15th, while seeking social consensus is important, there is a growing voice that more urgent concerns regarding national competitiveness require accelerating the introduction of exemptions. The intent is not to eliminate or create exceptions for the 52nd-hour workweek system itself, but to secure flexibility in working hour operations tailored to the nature of work, such as research and development (R&D).

A business official stated, "The 52-hour workweek exemption for Mega Special Zones will apply not only to semiconductors but to all advanced industries. Threats from China are also intensifying in sectors beyond semiconductors," emphasizing that securing flexibility in working hours is necessary even to maintain competitiveness.

In this regard, according to a survey conducted by the Federation of Korean Industries on July 26 involving 468 companies in the national advanced strategic technology sector, 50.6%—a majority—opted for R&D workforce working hour flexibility, including exemptions from the 52nd-hour workweek system and the introduction of 'White Collar Exemption' which excludes high-income professionals from working hour regulations as the most needed labor regulation exemption.

Exemptions from the 52nd-hour workweek system have been a long-standing demand of the business community for several years. Although the Semiconductor Special Act passed the National Assembly in January, discussions continued regarding the 52nd-hour workweek exemption, but the relevant clause was omitted during processing. The business community maintains that since China's has accelerated and competing nations have lowered regulatory thresholds during this period, exemptions must be reflected this time.

In fact, competing nations are moving toward relaxing working hour regulations. The Japanese government released administrative guidance that had capped overtime at 45 hours per month to boost R&D in advanced fields and productivity, allowing employees to work up to 100 hours per month if agreed upon by labor and management. The United States does not set an upper limit on working hours at all, while the UK also applies no upper limit if workers agree. Singapore excludes professional and managerial positions from regulations, and for general office workers, there is no upper limit if monthly salary exceeds 2,600 Singapore dollars (approximately 2.8 million won).

Another official stated, "Labor exemptions under Mega Special Zones, including the 52nd-hour workweek exemption, are being considered as incentives to encourage companies to relocate to special zones," adding that discussions on introducing labor exemptions must also be accelerated alongside other development projects such as infrastructure construction."