The South Korean semiconductor industry, including Samsung Electronics and SK Hynix, has brought forth a proposal for a 52-hour workweek exception for research and development (R&D) personnel. However, even if the proposal passes, the actual beneficiaries are expected to be few. This is due to the restriction of the exception to companies located within special zones and the narrowing of the eligibility to the top 3% of income earners. Concerns have been raised that employees in the same company may face different work hour regulations depending on their work location.
According to the National Assembly and industry sources, the Special Committee on Super Special Zones is reviewing the special zone law, which includes labor exceptions, until the end of January 2027. The bill, introduced by Democratic Party lawmaker Park Sang-hyuk, aims to allow exceptions for R&D workers involved in new product and technology development at companies within the special zones, specifically targeting the top 3% of income earners. These individuals can negotiate different work hour standards, including overtime, night, and holiday work, through written agreements with their employers. The bill also proposes extending the settlement period for flexible work hours to a maximum of six months.
The issue lies in the limited scope of the proposal. The special zone law is intended to encourage investment in advanced industries in regional hubs for balanced development. However, major R&D centers for Samsung and SK Hynix remain concentrated in the Seoul metropolitan area, meaning that only a small number of employees assigned to special zone facilities will benefit. Given that semiconductor development relies on collaboration among memory, foundry, and packaging teams, there are concerns that differing work hour standards within the same project could lead to confusion.
Moreover, the eligibility criteria are further restricted. While the industry has called for exceptions for all R&D personnel, the proposed law only allows the 52-hour workweek exception for the top 3% of income earners, who are perceived to have more negotiating power regarding their working conditions. However, the need for concentrated work is determined by project demands rather than income levels. Critics argue that many key personnel involved in critical phases of product development may be excluded from the exceptions.
While the industry welcomes the introduction of the exceptions, doubts remain about their effectiveness. Over 80% of Samsung and SK Hynix's semiconductor R&D personnel are based in the metropolitan areas of Pyeongtaek and Yongin. There are ongoing concerns that without including these key research personnel, it will be challenging to enhance national competitiveness in development.
It is also uncertain whether the exceptions will remain in the final bill. The special committee is also reviewing a version of the special zone law that excludes labor exceptions entirely, raising the possibility that related provisions could be removed during the combined review process. In contrast, a proposed amendment to the semiconductor special law by People Power Party lawmaker Ko Dong-jin seeks to apply exceptions to semiconductor R&D personnel nationwide, regardless of their location in special zones. However, this proposal is not included in the current special committee agenda due to differing jurisdiction.
Legislative timelines appear to be delayed. Initially prioritized for passage during the regular session, the special committee's review period extending to January 2027 effectively rules out the possibility of passing the bill this year. Consequently, the earliest opportunity for consideration may be in the February 2027 extraordinary session.
An industry representative stated, "While the discussion on the 52-hour workweek exception has progressed, the limitations of excluding metropolitan R&D hubs and practical engineers are clear, highlighting the urgent need for system adjustments to meet on-site demands."
* This article has been translated by AI.
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