the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee (Image courtesy of Yonhap)
SEOUL, Nov. 25 (Korea Bizwire) – A provision to exempt semiconductor R&D workers from South Korea’s 52-hour workweek regulation faces potential elimination from the proposed Semiconductor Industry Special Act, dealing another blow to efforts to reform the country’s strict labor laws.
According to parliamentary sources on November 24, the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee is discussing the removal of the “white-collar exemption” clause – which would have excluded high-income professionals from working hour restrictions – from the Special Act on Strengthening Competitiveness and Innovation Growth in the Semiconductor Industry.
The ruling Democratic Party has proposed moving the white-collar exemption discussion to the Environment and Labor Committee through amendments to the Labor Standards Act. However, this committee, known for its pro-labor stance due to its high concentration of former labor union members, makes the provision’s passage unlikely.
The 52-hour workweek regulation has been a contentious issue since its inception. First proposed in 2013, the law wasn’t passed until 2018 and was fully implemented for businesses with five or more employees in 2021. Businesses with fewer than 30 employees are still in a grace period.
Business groups have consistently advocated for more flexibility, including proposals to extend the current three-month flexible work period to one year. They argue that the 2022 special extension work system, which allows additional overtime beyond 12 hours with labor ministry approval, is too restrictive for practical implementation.
The Yoon administration officially launched initiatives to reform the system in 2022 through the Future Labor Market Research Group. In March 2023, the government proposed allowing companies to calculate overtime hours on monthly, quarterly, semi-annual, or annual bases rather than weekly.
While business groups welcomed this as a productivity booster, labor unions strongly opposed it, warning of overwork risks.
Following public backlash against what was dubbed the “69-hour workweek,” the government shifted its approach to maintaining the 52-hour framework while seeking improvements for specific industries and job categories.
The issue has gained renewed attention after Samsung Electronics’ underwhelming third-quarter results sparked concerns about the semiconductor industry’s competitiveness. Business groups have intensified calls for at least partial exemptions from the 52-hour rule for R&D personnel.
The government has shown support for the ruling People Power Party’s semiconductor bill, with Vice Labor Minister Kim Min-seok stating that reasonable implementation of any exemptions would be ensured, considering factors like worker consent, health protection, and operational transparency.
However, with opposition from both the Democratic Party and labor unions, experts believe the provision’s removal from the semiconductor bill makes its passage through the Environment and Labor Committee highly unlikely.
“While the clause’s removal seems likely, its fate in the Labor Standards Act remains uncertain given the committee’s strong labor ties,” a Democratic Party official from the Environment and Labor Committee said. “Further discussion might be possible if the ruling party presents new legislation.”
M. H. Lee (mhlee@koreabizwire.com)
