President Lee Jae-myung orders decree revision for semiconductor 52-hour workweek exemption
President Lee Jae-myung has directed officials to consider revising an existing enforcement decree rather than pursuing new legislation in response to the semiconductor industry's demand for a 52-hour workweek exemption.
Speaking at a meeting he chaired at the Cheong Wa Dae presidential office on the afternoon of the 23rd, the president addressed the question of whether to include a 52-hour workweek exemption clause in the "Mega Special Zone Act," a law intended to support mega special zones such as the Jeonnam-Gwangju semiconductor cluster, saying, "Discuss in depth with one another whether there are ways to modify the enforcement decree of the existing system or simplify the procedures." In effect, he concluded that the issue could be resolved not by adding a new exemption clause to legislation, but by improving the operation of the current Labor Standards Act enforcement decree and the Ministry of Employment and Labor's approval procedures.
Why the 52-Hour Workweek Has Become a Hot-Button Issue for the Semiconductor Industry
Under the current Labor Standards Act, weekly working hours are capped at 52—40 hours of regular work plus up to 12 hours of overtime. The problem stems from the unique nature of semiconductor production. The industry has long argued that semiconductor fabrication is a continuous process that is difficult to interrupt once started, and that intensive, extended work is inevitable during equipment inspections and process conversions. In particular, concerns have been raised that at sites like the Jeonnam-Gwangju semiconductor cluster, where massive facility investments are being made simultaneously, a lack of flexibility in staffing during construction and test-run phases could lead to project delays.
Against this backdrop, the semiconductor industry and some politicians have demanded that a working-hours exemption be explicitly written into the Mega Special Zone Act. Their argument is that a statutory exemption would be more effective than administrative guidelines and could reduce investment uncertainty. The president's directive is interpreted as a compromise approach that seeks to address this demand through administrative procedure improvements rather than legislation.
The Substance of the Compromise: Revising the Enforcement Decree
A special extended-work approval system already exists. The Minister of Employment and Labor can approve work exceeding overtime limits, but the industry has pointed out that application requirements and review procedures are cumbersome and approvals take a long time. The president's directive points toward lowering these procedural barriers. The idea is to let semiconductor companies obtain special extended-work approvals more quickly and predictably through the enforcement decree and administrative operations alone, without amending the law.
Compared to the legislative route, the advantages are speed and lower political cost. A bill must pass through the National Assembly, while an enforcement decree can be handled through administrative procedures. The limitations, however, are clear: an enforcement decree can only be set within the scope delegated by law, making it difficult to create a comprehensive, standing exemption for the semiconductor sector. Analysts note that operations will inevitably remain centered on case-by-case approvals, potentially falling short of the institutional stability the industry seeks.
The Divide Between Labor and Industry
Labor groups have maintained their opposition to expanding semiconductor exemptions. They worry that opening an industry-specific exception could spread demands for similar carve-outs across the manufacturing sector, and that longer working hours would heighten health risks and the danger of overwork among workers. Given that the 52-hour workweek system itself was built on a social consensus to prevent overwork, they argue it is difficult to accept an exemption without safeguards against its abuse.
Industry and economic ministries do the opposite math. Their logic is that regulatory flexibility is a key variable in national competitiveness amid the semiconductor investment race with the United States, China, and Japan. In the fierce competition to attract large-scale foundry investments, both domestic and foreign companies have repeatedly noted that labor regulations affect investment decisions. Some assess that the government's handling of this issue alongside the Mega Special Zone Act itself signals its intent to improve the investment environment.
Timeline and Legislative Outlook
The Mega Special Zone Act is an umbrella law supporting massive industrial complexes such as the Jeonnam-Gwangju semiconductor cluster. As National Assembly review gets underway, cross-party negotiation over the labor exemption clause is expected to emerge as a key point of contention. With the president's directive prioritizing an enforcement decree revision over creating a new exemption, a dual-track structure is likely, in which the labor clause is removed from the bill and regulatory relief is handled administratively.
In the short term, the focus will be on the Ministry of Employment and Labor's work to draw up a plan to streamline the special extended-work approval process and a revised enforcement decree. If the procedures are not genuinely simplified, criticism of the policy's effectiveness is likely; conversely, if the approval gate is widened, opposition from labor will intensify. Whether industrial flexibility and worker protection can both be secured through administrative measures alone, without revising the law, will be judged by the specific details of how the enforcement decree is designed.
