The ruling party’s push for a special semiconductor law is facing concerns that it may become a toothless bill lacking key components like the ’52-hour workweek exception’ and ‘subsidy provisions.’ The bill’s passage is hindered by disagreements within the opposition party, leading to difficulties in its processing. Amid calls for swift legislation to provide comprehensive support ahead of Donald Trump’s second-term U.S. administration, critiques arise from the industry regarding the National Assembly’s complacency.
As of the 25th, according to political and government sources, the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee held a legislative review subcommittee meeting on the 21st to deliberate on the semiconductor special law. However, they could not narrow down differences regarding the exemption of semiconductor R&D personnel from the 52-hour workweek and subsidy provisions.
The push for the semiconductor law has been halted due to the provision that exempts R&D roles from the 52-hour workweek. This clause allows for semiconductor R&D personnel to be excluded from the 52-hour rule based on written agreements between parties, according to criteria set by presidential decree. It was included to address the industry’s difficulties in expediting semiconductor R&D under the broadly applied 52-hour workweek policy, akin to the ‘white-collar exemption’ in the U.S., which exempts high-income professionals from working hours regulations.
However, the opposition party and labor groups express concerns that passing this law could lead to the widespread adoption of flexible work hours across the industry, resulting in long working hours and potentially infringing on workers’ health rights. Kim Won-i, a Democratic Party lawmaker and opposition secretary on the committee, stated, “The majority opinion among Democratic Party lawmakers is to remove the 52-hour exception clause,” adding that inserting special clauses for each special law may weaken the Labor Standards Act.
Currently, companies can work up to 64 hours with special extension work approved by the Minister of Employment and Labor under special circumstances or utilize selective work and flexible work systems under the Labor Standards Act, but there are limitations. An industry official said, “Creating a work environment where talent can work freely is urgent to focus on R&D, which is essential for securing next-generation semiconductor technology.” Ryu Seong-won, head of the Industry Innovation Team at the Federation of Korean Industries, noted, “There is a significant difference in semiconductor personnel compared to China and the U.S., and imposing restrictions on labor input raises doubts about overcoming this gap.”
Within the ruling party, there were concerns that the 52-hour exception clause could ultimately delay the special law’s progress. Ko Dong-jin, a former Samsung Electronics president and People Power Party lawmaker who has spearheaded the bill, proposed addressing working hours through amending the Labor Standards Act as part of a two-track approach. It is anticipated that the ruling party will attempt to reach an agreement within the year after further discussions in the bill subcommittee.
There are also disagreements between the ruling and opposition parties over the subsidy provision, which the industry has long demanded. Within the Democratic Party, voices caution that “the term subsidy could provoke the Trump administration and violate regulations of the World Trade Organization (WTO) and Free Trade Agreements (FTAs).” Ahn Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, criticized the complacency in political circles, stating, “We are at a crossroads of survival, and the indifference in the political domain is frustrating,” noting that as the U.S., Europe, and Japan provide subsidies worth billions to individual companies, the National Assembly is merely concerned with anti-business sentiment.