Two Special Mega-Zone Bills Introduced on the Same Day
The Democratic Party of Korea introduced two Special Mega-Zone bills on the same day, splitting the labor exemption into two versions. One version contains a clause allowing work beyond the 52-hour workweek, while the other does not. Submitting both simultaneously to the National Assembly reflects a compromise struck between two pressures: the goal of passing the bills within the year to support major investments such as a semiconductor cluster in the Honam region, and pushback from the labor community.
Why the Special Mega-Zone Act Was Introduced
The background is support for investment in regional strategic industries, including the South Jeolla Province–Gwangju semiconductor cluster. The government and ruling party cited regulations as the reason companies hesitate to commit to large-scale manufacturing clusters. The underlying judgment is that overlapping central and local government authority over labor, environment, and land use slows project timelines. The bill previously known as the "Mega Special Zone Act" was renamed the "Special Mega-Zone Act" and introduced on the 20th.
The core of the bill is to attach various regulatory exemptions and corporate support measures to industrial complexes on a metropolitan scale that transcends individual municipal boundaries. Once designated as a Special Mega-Zone, the area receives fiscal and institutional support for fostering regional strategic industries, while constraints on corporate site selection are eased.
The Key Issue: the 52-Hour Workweek Exemption
The bill's biggest sticking point is the exemption for high-income and research workers from the 52-hour weekly cap on working hours. Companies argue that in semiconductor R&D, long stretches of intensive work are unavoidable depending on experiment schedules. Accordingly, the bill includes an exemption clause that waives the working-hours cap only for high-income professional and research positions within the special zone.
The problem was labor's backlash. When the bill drew criticism that it would undermine the very foundation of the working-hours system, the Democratic Party adopted a strategy of submitting two bills—one with the labor exemption and one without. In effect, it left open the choice of which version to advance at the plenary session. The ruling party has locked in passage within the year, and some observers say the version with the exemption is likely to be the one that moves forward. News Tomato reported this as "effectively a done deal for the exemption."
Business Welcomes, Labor Objects
The business community, including the six major economic organizations, welcomed the introduction of the Special Mega-Zone Act and urged swift passage of the bill containing the labor exemption. Business groups take the position that the exemption is essential to preserving national competitiveness in the investment race against global rivals. In advanced industries such as semiconductors and displays, they argue, attracting investment will be impossible without regulatory relief as the United States, Taiwan, and Japan offer aggressive incentives.
Labor, by contrast, sees the expanded exemption as encouraging long working hours and heightening the risk of overwork. Some also criticize that only business-friendly exemptions are moving forward while key legislation on industrial accidents stalls in the National Assembly. At a Cabinet meeting on the 20th, President Lee Jae-myung voiced his frustration, calling for stronger penalties against companies that fail to take safety measures and for faster legislative action, saying, "It really is frustrating" and "Even begging won't do, will it." His remarks concerned the delay in industrial accident legislation, highlighting the gap between the executive branch and the National Assembly on labor policy overall.
Legislative Process and Outlook
The two bills will undergo review by the relevant standing committee, then proceed through the subcommittee and full committee on legislation, and finally a plenary session. With the ruling party targeting passage within the year, the pace of handling during the regular session is likely to accelerate. However, disagreements exist even within the Democratic Party over the labor exemption clause, and if opposition from labor intensifies, adjusting the clause during review appears inevitable.
Ultimately, the scope of the labor exemption in the final version is the key variable. The scenario most widely discussed is finding common ground by narrowing the exemption to high-income and research positions. Given that the bill is tied to the semiconductor cluster construction timeline, any legislative delay could directly delay investment schedules. The National Assembly's choice, in effect, will determine the direction of both the regional economy and labor policy.
