Lee Jae-myung Opens Door to 52-Hour Workweek Exemption for Semiconductors via Decree, Not Legislation

On the question of a 52-hour workweek exemption for the semiconductor industry, the president has directed officials to revise an enforcement decree rather than pursue new legislation.

President Lee Jae-myung on the 23rd instructed relevant ministries to "discuss deeply among themselves whether the existing system's enforcement decree can be revised or its procedures simplified" regarding the question of adding a labor special exemption—a 52-hour workweek exception sought by the semiconductor industry—to the so-called Mega Special Zone Act, which supports super-wide-area special zones including the South Jeolla–Gwangju Semiconductor Cluster. In effect, the order is to first explore whether the matter can be resolved by administrative directive within the framework of the current Labor Standards Act, rather than creating a new legal basis in a special act. This raises the likelihood that labor and industrial policy will pivot to the shortcut of an enforcement decree, bypassing the debate over legislative amendment.

Why the Labor Exemption Became the Point of Contention

The current Labor Standards Act caps working hours at 52 per week (40 statutory hours plus 12 overtime hours). Because semiconductor manufacturing requires continuous equipment operation and maintenance due to the nature of its processes, the industry has repeatedly argued that applying the cap to research, development, and pilot production personnel hampers technological competitiveness. The South Jeolla–Gwangju Semiconductor Cluster, a flagship project of the government's super-wide-area economic zone initiative, needed deregulation as a lever to attract investment. Against this backdrop, a proposal to attach a labor exemption to the Mega Special Zone Act—a special piece of legislation—sparked a debate over whether the foundations of the working-hours system should be opened up through an industry-specific law.

Key Contents of the Bill and the Presidential Directive

The structure of the dispute is simple. Codifying a 52-hour exemption for semiconductor R&D personnel in the Mega Special Zone Act would give industry a stable, reliable tool, but critics point out that piecemeal exemptions to labor standards through special acts could accumulate. On the other hand, the current Labor Standards Act and its enforcement decree already contain a flexible-approval system that allows overtime limits to be relaxed for certain R&D work after review by a labor relations commission. The president's directive is essentially to first examine "whether a new system is even needed," reflecting the judgment that revising the enforcement decree to ease procedural requirements could satisfy much of the industry's demand.

Where Labor and Industry Clash

Labor groups have opposed expanding the exemption, calling the 52-hour cap a minimal safeguard against overwork. They warn that if the actual working hours of R&D personnel grow outside the law's oversight, the risk of overwork will rise, and that a special-act exception for semiconductors could spread to other industries. Industry and economic ministries counter that in the semiconductor investment race with the United States, China, and Japan, workforce flexibility has become a variable in investment decisions. Across the political spectrum there is broad agreement on fostering the semiconductor industry, but positions diverge over whether the means should be a special act or an enforcement decree. If the government takes the decree route, implementation could come early without a vote in the National Assembly—a prospect the industry is expected to welcome.

Timeline Ahead and Market Impact

For the time being, the discussion is expected to move out of the National Assembly and into the Ministry of Employment and Labor's review of the enforcement decree. Practical consultations will likely focus on the scope of eased requirements for flexible approvals, the definition of eligible work, and shortening the labor relations commission review period. Some observers, however, note legal limits to covering the full range of R&D personnel through a decree alone, meaning a Labor Standards Act amendment may ultimately proceed in parallel. Tied to the investment timeline of the South Jeolla–Gwangju cluster, a revision is expected to take shape within the year. Since semiconductor equipment investment and hiring plans will be paced to the timing of regulatory finalization, whether the 'fast track' of an enforcement decree actually opens will be a key variable in judging quarterly investment flows going forward.