Semiconductor Megaprojects to Be Fast-Tracked... 52-Hour Workweek Exception Also Under Review

Government announces 13 regulatory improvements to expedite semiconductor investment
Permits, compensation and design to proceed simultaneously... more flexible working hours for key R&D personnel

Yonhap News Agency

The government will overhaul regulations across the entire process, from industrial complex development to fab construction and operation, and research and development (R&D), to accelerate investment in large-scale semiconductor megaprojects. It will introduce a fast-track system that allows permits, compensation and design for industrial complexes to proceed simultaneously, and is considering an exception to the 52-hour workweek for key semiconductor R&D personnel.

On the 23rd, the Ministry of Trade, Industry and Energy announced the “Measures to Rationalize Regulations for the Swift Implementation of Semiconductor Investments in Megaprojects” jointly with related ministries at the second plenary meeting of the Regulatory Rationalization Committee, chaired by the president at the Blue House Guest House. The measures include 13 improvement tasks covering investment, research and support.

The central aim of the measures is to “save time.” With demand for advanced semiconductors rising rapidly amid the spread of AI, the government believes that competitiveness depends not only on technological capabilities but also on how quickly companies can build factories, develop new technologies and enter the market. Semiconductor fabs, in particular, can operate only when essential infrastructure such as power and water supplies is in place, so delays in even one administrative procedure can push back the entire investment schedule.

The government will first speed up the development of semiconductor industrial complexes. The current process, in which various permits, compensation, design and construction proceed sequentially after an industrial complex plan is drawn up, will be changed so that permits, compensation and design proceed simultaneously. This will shorten the time required from industrial complex development to fab operations. If a semiconductor cluster is designated as an ultra-wide-area strategic industry special zone, the Ultra-Wide-Area Special Zone Act will also include provisions allowing additional permits to be processed together with the deemed permits available under the Special Act on Semiconductors.

The government will also reduce waiting times during production, operations and exports after fab construction. Since 95% of Korea’s semiconductor exports are manufactured or processed at bonded factories, it will expand plans to designate entire industrial complexes densely populated with advanced industries as comprehensive bonded zones. The aim is to streamline bonded factory licenses and procedures for moving goods, which currently have to be obtained separately for each fab, and facilitate the import, processing and movement of foreign-made equipment and raw materials.

Tax payment deferrals will also be allowed for construction equipment used to build fabs, including foreign-made analytical and measurement instruments. Repair parts for semiconductor manufacturing equipment produced at overseas subsidiaries will also be allowed to be stored in advance at domestic bonded factories, minimizing production disruptions caused by equipment failures. If they meet certain requirements, high-performing regional bonded factories will be allowed to transport pre-approved items first and file export declarations while the goods are in transit.

The government will also revise overlapping regulations that do not suit semiconductor production sites. It will improve procedures that currently require separate approvals and reports to the Ministry of Employment and Labor and the Ministry of Climate, Energy and Environment for the same work involving hazardous chemicals. For high-pressure gas, it will establish a separate safety-standard exception so that technical reviews and change permits covering multiple cylinder cabinets can be processed together.

In addition, the government will consider an exception to working-hour rules so that key semiconductor R&D personnel in ultra-wide-area special zones can focus on research during periods of intensive technology development. The measure reflects industry requests that uniform application of the current 52-hour workweek could slow advanced semiconductor R&D. The government plans to consult with labor and business groups to develop specific measures, on the condition that appropriate compensation is provided and research personnel’s right to health is protected.

The government will also expand opportunities for materials, parts and equipment companies to test their technologies in actual production environments. It will introduce an exception exempting nonprofit corporations operating semiconductor testbeds from gift tax when they receive facilities or equipment from companies free of charge, and simplify procedures for bringing R&D prototypes into and out of high-performing bonded factories.

In particular, the government will establish a system to directly manage individual investment schedules for megaprojects. It will use the Semiconductor Industry Competitiveness Enhancement Special Committee, chaired by the president, as a pan-government coordination body. The Ministry of Trade, Industry and Energy’s Semiconductor Innovation and Growth Support Group, launched on October 20, will monitor investment schedules for each company, from fab construction plans through groundbreaking and operations. Issues involving multiple ministries and local governments will also be coordinated through this process.

For large-scale regional investments, the government will introduce “menu-based regulatory exceptions,” which allow companies to select the regulatory exceptions they need, as well as demand-responsive regulatory suspensions. It will also pursue enactment of the Ultra-Wide-Area Special Zone Act, which will provide customized support packages across ministries.

Minister of Trade, Industry and Energy Kim Jeonggwan said, “The semiconductor race is a race against time. We need to reduce the time companies spend waiting, secure the time needed for research and demonstration, and make government processes more efficient by aligning them with companies’ investment schedules.” He added, “We will protect safety and workers’ rights while boldly improving procedures that do not fit conditions at production sites, and support semiconductor companies so they do not miss the right time to invest and conduct research and development, ensuring that megaprojects proceed without disruption.”

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