Semiconductor Industry Pushes Back Against Partial Regulatory Relief

By KIM NA YOON Posted : August 4, 2026, 18:04 Updated : August 4, 2026, 18:04


The debate over exemptions to the 52-hour workweek regulation for semiconductor research and development (R&D) personnel is reigniting within the industry. As the government pushes for flexible work hour regulations primarily in non-capital special zones, industry stakeholders are expressing strong opposition, calling it a "half-hearted measure" that excludes key locations.

According to political and industry sources, the government plans to submit the "Special Law on Designation and Management of Mega Special Zones" to the National Assembly as early as this month. This legislation follows the announcement of three mega projects worth 1,500 trillion won in June, aimed at fostering semiconductor clusters outside the capital and supporting regional balanced development.

A key component of the proposal is the introduction of a "white-collar exemption" that would not apply the 52-hour workweek limit to the top 3% of income earners among researchers and managers in designated special zones. Additionally, the plan includes extending the settlement period for selective working hours from the current one month to a maximum of six months, aligning with periods requiring intense focus.

However, the semiconductor industry's response has been lukewarm. Major hubs like Pyeongtaek and Icheon, home to Samsung Electronics and SK Hynix, as well as the upcoming Yongin cluster, are likely to be excluded due to their location in the capital region. With over 80% of the country's semiconductor R&D talent concentrated in these areas, critics argue that the effectiveness of the regulatory changes will be limited.

An industry insider stated, "The outcome of the global AI semiconductor competition will be determined by advanced processes and next-generation high-bandwidth memory (HBM) R&D conducted at existing hubs. While regional balanced development is important, excluding core R&D locations will inevitably limit the country's semiconductor competitiveness."

Recently, lawmaker Ko Dong-jin of the People Power Party proposed an amendment to the Semiconductor Special Law that would expand work hour exemptions to all semiconductor R&D personnel nationwide, regardless of location. This follows the removal of the 52-hour exemption clause during bipartisan negotiations in January. Ko emphasized, "Applying regulations differently based on work location undermines fair competition among companies and hinders timely technological development at the national level."

The technological gap with global competitors is widening. Companies like NVIDIA and Qualcomm in the U.S. have established environments that allow high-salaried research personnel to focus on R&D without work hour restrictions. Taiwan's TSMC operates a 24-hour relay R&D system through its "Nighthawk" project.

In contrast, domestic engineers face challenges maintaining workflow continuity due to the 52-hour regulation, especially during critical phases like tape-out or yield assurance.

Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, remarked, "Semiconductor R&D is a race against time, requiring 24-hour equipment operation to achieve yield. If domestic researchers remain trapped by uniform regulations while global competitors focus their resources on unrestricted technological development, losing global technological leadership is only a matter of time."





* This article has been translated by AI.

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