[52-Hour Workweek Debate] "Golden Time for Advanced Industries" vs "Institutionalizing Overwork and Deteriorating Labor Rights"

Review of 'White-Collar Exemption' for High-Earning R&D Personnel
Business Community in Favor vs. Strong Opposition from Labor Unions
Ruling Party: "Transforming Work Practices" vs. Opposition: "Expand Nationwide"

The issue of 'easing the 52-hour workweek regulation' has emerged as the most contentious topic in the mega-special district special law set to be enacted in the second half of this year. As the government considers relaxing working hour restrictions for high-earning research and development (R&D) personnel to accelerate ultra-large megaprojects, the business community welcomes the move, emphasizing the need to "protect the golden time of the high-tech industry." On the other hand, labor unions are strongly opposed, denouncing it as a "deterioration of labor rights that institutionalizes overwork." The debate is expanding as political circles remain divided and some even argue that actual corporate demand for such deregulation is not high.

Photo by Yonhap News Agency, showing the headquarters of SK hynix in Icheon, Gyeonggi Province on the 29th.

Government Considers 'White-Collar Exemption' for Mega-Special Districts

According to relevant ministries on August 12, the government is considering the introduction of a so-called 'white-collar exemption,' which would ease regulations on working hours for high-earning R&D professionals, ahead of the enactment of the 'Special Act on Designation and Operation of Mega-Special Districts' (tentative name) in the second half of the year. The plan is to designate regions where mega-projects are being pursued as mega-special districts and relax various regulations within them. In the labor field, possible measures include: ▲ exemption from the 52-hour workweek cap ▲ payment of ordinary wages instead of overtime, night, or holiday pay ▲ expansion of the flexible working hour system ▲ extension of the permissible period for fixed-term employees ▲ broader allowance for dispatched workers, among others. The white-collar exemption, which was previously dropped during the semiconductor special act discussions, is now being revived with application limited to mega-special districts.

Business Community: "Golden Time for Advanced Industries... Need for Flexible Working Hours"

The business sector welcomes this move, stressing that labor flexibility is essential to secure the golden time, which will determine technological competitiveness in advanced industries. According to a survey by the Korea Employers Federation of 468 companies in national high-tech strategic industries, 42.9 percent of responding companies cited "exemption and deferment of key regulations" as necessary for the success of mega-special districts. Among labor regulation exceptions, 50.6 percent identified "flexible working hours for R&D personnel" as the most critical task. Lee Dong-geun, executive vice chairman of the Korea Employers Federation, said, "For mega-special districts to become a new growth solution, bold regulatory innovation that can offset the preference for the Seoul metropolitan area must come first," and added, "We hope these will become regulatory free zones that lead South Korea’s innovative ecosystem." Kim Junghoon, executive director of the Korea Industrial Technology Association, also emphasized, "In order not to miss the golden time for core industries such as semiconductors, securing flexible working hours in R&D is essential."

Labor Unions: "Institutionalizing Overwork"... Major Confederations Oppose

Labor unions are strongly opposed. The two major union confederations—the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions—argue that if labor deregulation is included in the mega-special district law, labor rights could regress. The Gwangju-Jeonnam branch of the Korean Confederation of Trade Unions stated, "This is a circumvention, pushing through labor deregulation that was withdrawn due to social opposition," and added, "Prolonged working hours decrease productivity and creativity, and regulatory exceptions for special districts risk spreading throughout all high-tech industries." Political circles are also split. While there are voices within the ruling party supporting the need for deregulation, there are also calls for caution. Assemblyman Jang Cheol-min, a member of the Democratic Party’s Special Committee on Support for the Three Major Mega-Projects, said at a field meeting at the Yongin Semiconductor Cluster on August 11, "With the current approach, it will be difficult to accelerate the completion of the Yongin Cluster," and said, "We must drive the country’s transformation and changes in working practices." In contrast, Kang Jun-hyun, chief spokesperson of the Democratic Party, said, "There are some differing opinions within the party, so a thorough discussion is needed before deciding."

On the 30th, officials at Incheon International Airport's Korean Air Cargo Terminal are loading semiconductors from Samsung Electronics and SK hynix onto an aircraft. Joint coverage by Yonhap News Agency

The opposition party, People Power Party, takes the position that the scope of application should be expanded. The People Power Party insists that "if the system is necessary for national competitiveness, it should be extended to all high-tech industries, not just special districts." Assemblyman Ko Dongjin has already introduced an amendment to the Semiconductor Special Act to grant exemptions from the 52-hour workweek to all semiconductor researchers.

"Actual Corporate Demand Not That High," Counterarguments Raised

Controversy also surrounds whether the exception to the 52-hour rule truly matches the demand from companies. According to data from the Ministry of Employment and Labor obtained by Assemblyman Lee Yong-woo, a member of the National Assembly Committee on Climate, Energy, Environment, and Labor of the Democratic Party, only 62 cases of special extended work were applied for in the semiconductor R&D sector over the past year and a half. Among these, only 4 cases (6.4 percent) requested an extension period of six months. Assemblyman Lee pointed out, "Major semiconductor companies did not even use all the approved extra work hours," and claimed, "The business sector is demanding regulatory changes that differ from on-the-ground needs."

The Economic, Social and Labor Council—a tripartite dialogue body—also believes that both industrial competitiveness and labor rights should be considered. Chairperson Kim Ji-hyung of the Economic, Social and Labor Council stated, "The need to boost the competitiveness of high-tech industries such as semiconductors, physical AI, and AI data centers is something not only labor unions but all citizens can agree on," but added, "Since exceptions to labor regulations are a core concern for labor, measures to address such concerns should also be considered."

This content was produced with the assistance of AI translation services.