South Korea Bets on Chips With New Support Law (Image courtesy of Yonhap)
SEOUL, Jan. 29 (Korea Bizwire) — South Korea’s National Assembly on Thursday approved a special bill designed to expand government support for the country’s semiconductor industry, underscoring the sector’s growing importance to the nation’s export-driven economy.
Passed during a plenary session, the legislation establishes a legal framework for developing large-scale semiconductor clusters and strengthening related infrastructure, as Seoul seeks to reinforce its position in an intensifying global competition for advanced chips.
The bill authorizes the designation of semiconductor industrial zones and provides a basis for financial assistance to companies operating within them. It also eases regulatory requirements for the construction and expansion of critical infrastructure, including power supply systems, water facilities and transportation networks, while enabling both central and local governments to offer tax incentives.
Lawmakers, however, left out one of the industry’s most controversial demands: an exemption from the country’s 52-hour workweek for semiconductor researchers. Chipmakers have argued that rigid labor limits hinder research and development during periods of intensive technological competition, but the proposal failed to gain political consensus between the ruling Democratic Party and the opposition.
The Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry is passed during the second plenary session of the 431st extraordinary session of the National Assembly on Jan. 29. (Yonhap)
The vote comes as South Korea’s leading chipmakers are enjoying a historic upswing. Samsung Electronics and SK hynix both posted record earnings last year, driven by surging global demand for semiconductors used in artificial intelligence computing.
SK hynix is currently building new production lines in Yongin, about 50 kilometers south of Seoul, while Samsung Electronics has announced plans to construct additional fabrication facilities in the same region. Together, the investments are expected to transform Yongin into the country’s primary semiconductor hub.
In the same session, lawmakers approved a revision to the Public Holidays Act restoring Constitution Day as a national holiday. Observed annually on July 17, the day had lost its holiday status in 2008, when it was reclassified as a commemorative event and government offices and businesses remained open.
Parliament also passed amendments to the Assembly and Demonstration Act allowing protests to be held near the residences of the president and other senior officials, provided they do not escalate into large-scale demonstrations or disrupt official duties.
The package of measures reflected the breadth of issues confronting the legislature — from industrial strategy and labor policy to civil liberties — as South Korea balances economic ambition with social and political pressures.
Kevin Lee (kevinlee@koreabizwire.com)
