South Korea Eyes Workweek Exemption for Honam Semiconductor Zone Amid Labor Reform Push

The South Korean government is exploring significant labor reforms for the proposed semiconductor "mega-special zone" in the Honam region. A key consideration is granting an exemption from the national 52-hour workweek, a move aimed at boosting competitiveness in the critical semiconductor industry.

Further proposed changes include allowing fixed-term employment contracts to extend up to four years. The government also plans to relax work hour regulations for a select group: managers in the top 3% income bracket and research and development (R&D) personnel. This "white-collar exemption" would allow these individuals to work beyond the standard weekly limit, provided they consent, without the usual overtime pay requirements.

Additionally, the government is looking to broaden the scope of dispatched workers for foreign investment companies. However, the path forward for these proposals is not entirely clear. The ruling party has expressed caution due to potential opposition from labor unions and some factions within the party itself. The Ministry of Trade, Industry and Energy is reportedly drafting a special bill for the mega-special zone, targeting submission to the National Assembly early next month, while the Ministry of Employment and Labor has briefed lawmakers on the proposed labor-related special provisions.