Labor and Civil Society Groups: "Withdraw the Special Act on Super-Regional Special Zones; It Favors Businesses, Not Regional Development"

Criticism over erosion of protections for labor, healthcare, housing, and more
Questions raised over easing holding company regulations for SK hynix

Labor and civil society groups on the 26th called for the withdrawal of the “Special Act on Super-Regional Special Zones,” proposed by the government and ruling party, saying it would undermine labor rights, the public nature of healthcare and housing, and the principles of economic democratization. They argued that although the bill is presented as a means of promoting balanced regional development and advanced industries, in practice it focuses on broad deregulation and special benefits to make investment easier for businesses.

The Korean Confederation of Trade Unions (KCTU) is holding the National Migrant Workers' Rally in front of the Seoul Regional Employment and Labor Office on the 13th. Yonhap News

Labor and civil society groups, including Solidarity for Economic Reform, the Citizens’ Coalition for Economic Justice, the Korean Confederation of Trade Unions (KCTU), the Federation of Korean Trade Unions (FKTU), the People’s Solidarity for Participatory Democracy (PSPD), and Lawyers for a Democratic Society (Minbyun), held a press conference in front of the fountain at the Blue House that day and called for the immediate withdrawal of the bill. The groups criticized the bill for easing regulations across society, from working hours and employment rules to the establishment of medical institutions, housing supply, land expropriation, and the use of personal information. They said the goal of balanced regional development must not be used to justify rolling back the rights of workers and residents or undermining the public interest.

The government is pursuing the enactment of the “Special Act on Super-Regional Special Zones,” which includes around 320 regulatory exemptions—the largest number ever—to support megaprojects in semiconductors, artificial intelligence (AI), and robotics, and to prevent regional decline.

Han Sanghee, co-chair of the PSPD, said that the phrase “notwithstanding,” which creates exceptions to existing laws, appears around 170 times in the bill. “The essence of the bill is to make exceptions to the public-interest principles of existing laws for the sake of corporate investment and profits,” he said. He stressed that people’s livelihoods should be the goal of growth and development, not a means of achieving economic growth or an obstacle to it.

In the labor sector, the groups raised concerns about the possibility of longer working hours and greater job insecurity. Han Seonggyu, vice chairman of the KCTU, said that exceptions to the 52-hour workweek for research and development (R&D) workers and others, the expansion of the selective working-hour system, and the extension of the period for employing fixed-term workers could worsen working conditions. “Special provisions allowing unpaid holidays at foreign-invested companies and expanding the types of work eligible for dispatch and the duration of dispatch could also infringe on workers’ right to rest and job security,” he said.

The groups also criticized the government for proposing a bill containing special labor provisions before holding social dialogue, despite having proposed such dialogue. Lee Bonghyeon, head of external relations at the FKTU, said that exceptions to labor regulations starting in special zones could trigger competition among regions to lower labor standards. He called for the bill’s withdrawal and measures to create quality local jobs and expand public services.

On economic democratization, the groups raised concerns about special favors for specific large corporations. Noh Jonghwa, a policy committee member at Solidarity for Economic Reform, said that a special provision reducing the requirement for a sub-subsidiary of a general holding company to own 100% of its subsidiary to 50% was effectively intended for SK hynix. He also warned that allowing semiconductor plants built with investment from the Advanced Strategic Industry Fund to be leased to companies could leave public funds shouldering excessive investment risks.

The groups also warned that the bill could undermine the public interest in healthcare and housing. Kim Jaeheon, secretary-general of the Free Medical Care Campaign Headquarters, said that a provision allowing corporations established by foreign nationals to open medical institutions could lead to attempts to establish for-profit hospitals. Kim Juho, an activist with the Housing Rights Network, criticized provisions that could infringe on residents’ housing rights, including expanding private developers’ participation in residential land development and housing supply, granting them the power to forcibly expropriate land, and creating exceptions to the price cap on new apartments and the mandatory ratio of public rental housing.

Choi Houng, chair of Minbyun’s Digital Information Committee, said that safeguards to protect the rights of individuals whose information is collected are inadequate in light of provisions easing obligations concerning the use and provision of personal location information and its destruction, as well as expanding the use of medical information. The groups argued that the right to control one’s personal information and the protection of health information must not be weakened in the name of fostering the AI industry.

The groups stressed that they do not oppose balanced regional development or the promotion of advanced industries themselves, but that deregulation and financial support for businesses alone cannot ensure sustainable regional development. They called for regional development policies to be redesigned to uphold labor rights and the principles of economic democratization while also expanding public services such as housing, healthcare, and environmental protection.

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