Government Weighs Amending Enforcement Decree Instead of New Law for 52-Hour Workweek Exemption
The government has decided to explore amending the enforcement decree of an existing system rather than pursuing new legislation to allow an exemption from the 52-hour workweek cap for semiconductor clusters.
At a major meeting he chaired at the presidential office in Cheong Wa Dae on the afternoon of the 23rd, President Lee Jae-myung instructed officials regarding a proposal to include the 52-hour workweek exemption in the Special Mega-Zone Act, also known as the Mega Special Economic Zone Act, to support the Gwangju semiconductor cluster in South Jeolla Province, saying, "Discuss in depth among yourselves whether there is a way to amend the enforcement decree of the existing system or simplify the procedures." This suggests that the debate over labor-hour flexibility to secure semiconductor industry competitiveness may be resolved through regulatory adjustments rather than new legislation.
Why This Has Become an Issue Again
The 52-hour workweek system limits work to a maximum of 52 hours per week under the Labor Standards Act. However, the industry has consistently voiced complaints that intensive work shifts are inevitable on semiconductor production lines due to equipment maintenance and the nature of cleanroom processes. Domestic and foreign investors have repeatedly pointed out that working-hour regulations are holding back investment in the fierce fab expansion race against the United States, China, and Taiwan.
Against this backdrop, legislative discussions were pursued to include a working-hour exemption clause in the Mega Special Economic Zone Act aimed at supporting semiconductor clusters. The idea was to designate semiconductor research and production facilities as special zones to handle various permits in a single process while easing labor regulations.
The Significance of the Enforcement Decree Alternative
What President Lee raised on the day was a shift in approach. While posing the fundamental question of "whether a new system is needed," he ordered officials to first examine ways to amend the enforcement decree of the already-operating system or streamline the special exemption procedures. In fact, the Mega Special Economic Zone Act itself already contains provisions for flexible working hours for eligible research and development facilities, and the government's judgment is interpreted as meaning that much of the issue can be resolved through subordinate regulations alone, without new legislation.
Amending an enforcement decree offers a significant advantage in speed, as it can be done through administrative procedures without a vote in the National Assembly. While a bill must pass through committee review, systematic and textual review by the Legislation and Judiciary Committee, and a plenary vote, an enforcement decree only requires a pre-legislative notice and regulatory review. Some analysts see this as a pragmatic choice to implement the system early in line with semiconductor investment timelines.
Labor and Industry on Collision Course
The debate is starkly divided. Industry and semiconductor companies argue that an exemption is inevitable given the unique demands of research, development, and production sites. Their logic is that responsiveness in processes directly equates to competitiveness in global competition. The argument is also gaining traction that Korea cannot remain the only country bound by such regulations when major nations are racing to ease regulations to support their semiconductor industries.
Labor groups oppose the move. They raise concerns that the exemption could spread across the manufacturing sector, and argue that extending working hours violates workers' right to health at a time when overwork issues have already surfaced in the semiconductor industry. With many voices across the political spectrum calling for balanced discussion, some interpret the pivot from legislation to an enforcement decree as a strategic move to reduce political friction.
Timeline and Outlook
Inter-ministerial consultations are expected to get into full swing for now. The Ministry of Employment and Labor will likely examine ways to amend the Labor Standards Act enforcement decree, while the Ministry of Trade, Industry and Energy reviews the special exemption procedures under the Mega Special Economic Zone Act, before an integrated plan is drawn up. Given the presidential office's directive to "discuss in depth among yourselves," the process of narrowing differences between ministries will be a key variable going forward.
If an amendment to the enforcement decree is prepared, it is expected to go through pre-legislative notice and regulatory review, targeting implementation by the end of this year or early next year. However, labor opposition could intensify over whether to limit the scope of application to semiconductor research and production facilities, and to what extent the special exemption application procedures should be eased. The key point to watch is whether the exemption will expand across the semiconductor belt, from the Gwangju cluster to Yongin and Pyeongtaek.
