Mega-special zone law needs a 52-hour workweek exemption

The government and the Democratic Party are preparing a special law to support mega-special economic zones designed to foster regional strategic industries, including the proposed Honam semiconductor cluster. The legislation is intended to accelerate balanced regional development by granting regulatory exemptions, tax and financial incentives, and support for attracting skilled workers, giving substance to the administration’s "five megaregions and three special self-governing provinces" strategy.

The bill, expected to be introduced in the National Assembly later this month, reportedly will adopt a "menu-style" system that allows companies and local governments to choose the regulatory and financial incentives best suited to their needs. Such flexibility is welcome. Industries including semiconductors, automobiles and biotechnology face different operational challenges, and support measures should reflect those differences rather than rely on a one-size-fits-all framework.

One key question, however, remains unresolved: whether the legislation will include an exemption from Korea’s 52-hour workweek limit, a change the business community has sought for years.

Introduced in July 2018, the weekly working-hour cap has repeatedly been criticized as limiting the competitiveness of knowledge-intensive industries. Businesses argue that, at a minimum, advanced sectors such as semiconductors should be allowed greater flexibility. Exemptions should apply not only to semiconductor research and development personnel but also to workers building fabrication plants.

The rapid construction of TSMC's Kumamoto plant in Japan was made possible not only by streamlined administrative support but also by construction schedules that continued around the clock. As Presidential Chief of Staff Kang Hoon-sik has said, completing the Honam semiconductor cluster during the current presidential term will require removing obstacles to faster construction. Relaxing the 52-hour rule is one of them.

The government has already demonstrated a willingness to rethink regulation. In April, at a Regulatory Reform Committee meeting chaired by President Lee Jae Myung, it adopted a negative regulatory approach for mega-special zones, allowing all activities unless explicitly prohibited by law or policy. If that principle is to be taken seriously, there is little reason to exclude greater flexibility in working hours from the package of regulatory reforms.

Uniform limits on working hours may have been introduced with good intentions, but they can become barriers to technological innovation and higher productivity. Earlier this year, the Special Semiconductor Act was enacted without a provision exempting semiconductor R&D personnel from the 52-hour limit after objections from labor groups.

The mega-special zone law should not repeat that precedent. If legislation intended to strengthen Korea's strategic industries omits one of the measures businesses consider most essential, it risks becoming another incomplete reform that falls short of its stated ambitions.