The Democratic Party of Korea proposed the 'Super Mega Zone Law' on October 20 to support three major projects, including the Honam semiconductor cluster. However, following backlash from labor groups regarding the inclusion of labor exemption clauses, the party plans to introduce a separate bill excluding these provisions and will decide later which bill to present to the National Assembly.
Park Sang-hyuk, a Democratic Party lawmaker and the ruling party's representative on the National Assembly's Political Affairs Committee, introduced the 'Special Act on Designation and Operation of Super Mega Strategic Industrial Zones for Local-Driven Growth,' which includes approximately 320 regulatory exemptions and about 40 policy support packages.
The bill aims to designate and operate 'super mega strategic industrial zones' as key growth hubs led by regions and businesses. It includes provisions for menu-style regulatory exemptions, tailored regulatory delays based on business needs, and initiatives to promote the use of renewable energy, including the establishment of special leading zones for renewable energy and support for finance, taxation, talent development, infrastructure, and technology startups.
Additionally, the bill provides for the establishment of special subsidies to attract businesses, preferential financial support and credit guarantees, and tax and fee reductions.
Initially proposed as the 'Mega Zone Special Act,' the bill included various labor exemption clauses, such as a 'white exemption' that would apply exceptions to the 52-hour workweek for high-income professionals and research and development personnel. However, due to ongoing opposition from labor groups, the Democratic Party has decided to introduce both a bill with labor exemptions and one without.
In addition to Park's bill, it is reported that Choi Gi-sang, the ruling party's representative on the National Assembly's Climate, Energy, Environment, and Labor Committee, plans to introduce a separate bill excluding labor exemptions as early as October 21. Choi's bill is expected to omit provisions related to labor exemptions, the extension of the employment period for temporary workers, and the expansion of permitted tasks for dispatched workers.
Following the announcement of the Democratic Party's bill that includes labor exemptions, concerns were raised from labor groups and the Justice and Innovation Party, among others.
The Korean Confederation of Trade Unions issued a statement condemning the government and ruling party for proposing a bill containing labor reform measures without even beginning substantive discussions on the issues in the social dialogue regarding mega zones. The Korean Trade Union Confederation also criticized the attempt to relax labor hour regulations and expand the use of non-regular workers under the pretext of revitalizing the local economy and fostering advanced industries.
The Justice and Innovation Party, a prominent progressive group, stated, 'While there is no disagreement on the need to enhance the competitiveness of advanced industries and attract large-scale investments, this cannot serve as a justification for dismantling the 52-hour workweek established by the Labor Standards Act.' The Progressive Party also demanded the withdrawal of labor-reducing exemptions and the scrapping of any bills containing such provisions.
* This article has been translated by AI.
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