Kim Jeong-kwan, the Minister of Trade, Industry and Energy, reaffirmed the need for flexible work hour regulations for high-income research and development (R&D) personnel working in mega special zones. He also mentioned the possibility of providing tax benefits to workers who settle in these regions.
During a National Assembly audit on October 6, Kim responded to a question from Democratic Party lawmaker Jeong Jin-wook regarding the necessity of flexible work hours, including a 'white-collar exemption' for high-income R&D professionals. "I have raised this issue several times," Kim said, adding that for advanced industries, such flexibility is essential for the benefit of the nation, companies, and the individuals involved.
The white-collar exemption refers to a system that applies different work hour regulations to high-income professionals. Discussions surrounding the special law for mega special zones have also highlighted the need for more flexible work hours for advanced industry research personnel compared to current regulations.
Jeong pointed out that the current maximum settlement period for the selected work system is three months, which poses a problem as advanced R&D projects often take longer. He argued for extending the settlement period to six months or even up to a year to better align with the realities of the industry.
Jeong emphasized that the conditions created by the super-wide special law are crucial for encouraging companies to relocate to regional areas, stating that it is difficult to attract businesses to the provinces under the same regulatory and cost structures as the metropolitan area.
Direct economic incentives to encourage workers in mega special zones to settle in these regions were also discussed. Jeong suggested that to ensure the success of local advanced industry hubs, such as the southwestern semiconductor cluster, it is important not only to build factories but also to facilitate the settlement of personnel. He proposed considering direct economic incentives, such as tax reductions on earned income for strategic industry workers who settle in these areas.
In response, Minister Kim explained that discussions about lowering the income tax rate for companies and workers in mega special zones are ongoing. He noted, "Initially, I thought we should lower the income tax rate, but we haven't reached that point yet," while acknowledging that some tax relief measures are already reflected in the tax law.
* This article has been translated by AI.
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