President Lee Jae-myung Orders Revision of Enforcement Decree on 52-Hour Workweek Exemption
President Lee Jae-myung has instructed officials to examine revising the existing enforcement decree first, rather than pursuing new legislation, in response to the semiconductor industry's demand for an exemption from the 52-hour workweek.
At a meeting he chaired at the presidential office in Cheong Wa Dae on the afternoon of the 23rd, President Lee, addressing the issue of whether to include a working-hours exemption clause in the "Mega Special Zone Act"—a law designed to support mega zones such as the Jeonnam-Gwangju semiconductor cluster—said, "Discuss among yourselves in depth whether there is a way to revise the enforcement decree of the existing system or simplify the procedures." The remark is interpreted as a call to first determine whether administrative measures can resolve the issue before creating a new exemption through legislation in the National Assembly.
Why the Issue Has Resurfaced
The current Labor Standards Act prohibits work exceeding 52 hours per week. Overtime is capped at 12 hours per week, and violations are subject to criminal penalties for employers. Semiconductor manufacturing is a continuous-process industry where facilities must never stop running, and the industry has long argued that flexible working-hour adjustments are needed due to equipment inspections concentrated in short periods and the precision nature of its processes.
The problem lies in the procedures for applying exemptions. Existing working-hours exemptions require a special extended-work approval designated by the government, and the industry has pointed out that this process makes it difficult to align with actual investment schedules. Given that the large-scale semiconductor cluster being built in Jeonnam and Gwangju is a national strategic project with tens of trillions of won in private investment expected, calls to ease regulations on workforce deployment to match construction and operational timelines have escalated into a legislative effort.
Key Provisions and Scope of the Bill
The Mega Special Zone Act at the center of the controversy would apply blanket regulatory and permitting exemptions to region-wide industrial clusters. Whether to add a clause exempting semiconductor research and production personnel from the 52-hour workweek has emerged as the key sticking point. One proposal under consideration would limit the scope to companies investing in semiconductor facilities within the zones and their research and development personnel.
President Lee's directive signals a shift in approach. Even without explicitly enshrining the exemption in law, much of the goal could be achieved by changing the interpretation and application of the enforcement decree of the Labor Standards Act and related official notices. For instance, simplifying the requirements and procedures for special extended-work approval would allow early implementation without waiting for National Assembly debate. Administrative rulemaking proceeds without a parliamentary vote, offering the advantage of reducing any legislative vacuum.
Diverging Views from Labor and Industry
Industry welcomes the move. With rival semiconductor nations competing for investment by touting deregulation, any delay in timing translates directly into lost competitiveness, the argument goes. In particular, during the early stages of cluster development, demand for construction and commissioning personnel surges, so simplifying procedures is seen as delivering real impact.
Labor groups voice concern. Long working hours directly infringe on workers' right to health, and they insist that the special nature of continuous-process operations must not become a justification for overwork. Critics also note that because enforcement decree revisions occur without parliamentary review or hearings, worker protections could be weakened. The government, in turn, faces the task of designing safeguards, such as a cap on the duration of exemption approvals and health checkups.
Legislative Process and Outlook
The Mega Special Zone Act itself is awaiting review by the relevant standing committee of the National Assembly. Whether to include the labor exemption clause in the bill or separate it will be subject to bipartisan negotiation. The People Power Party is largely favorable toward expanding regulatory exemptions, though it may disagree over the scope of working-hours relief. Some opposition parties, including the Cho Kuk Innovation Party, have maintained a cautious stance on extending long working hours, separate from debates on judicial and labor reform.
For now, bureaucratic policy coordination is expected to move quickly. In line with the president's directive, the Ministry of Employment and Labor and the Ministry of Trade, Industry and Energy are expected to review the legal effectiveness and procedural design of a revised enforcement decree. Options under consideration could include converting the prerequisites for special extended-work approval into post-hoc verification, or ensuring that semiconductor clusters are not excluded from eligibility.
If the enforcement decree revision is completed soon, the Mega Special Zone Act may incorporate a scaled-down version of the labor provisions. Conversely, if officials conclude that the decree alone does not provide sufficient flexibility, discussions on creating a new exemption would return to the National Assembly. Either way, the balance between semiconductor investment schedules and the level of labor protection is set to be tested simultaneously through both legislative and administrative channels.
