ED No 52-hour workweek exemption for semiconductor industry
The logo of SK hynix can be seen on its product during the 26th Semiconductor Exhibition in Seoul, Korea, Oct. 3, 2024. Reuters-Yonhap
Semiconductor Special Act likely to pass with 52-hour workweek in place
After sparring on nearly every issue, the ruling Democratic Party of Korea (DPK) and main opposition People Power Party (PPP) have finally narrowed their differences over the Semiconductor Special Act, which includes, among other provisions, government support for the sector. Having passed onto the Legislation and Judiciary Committee, the two parties have agreed to move the bill to a plenary session after nearly a year of debate. The bill was originally proposed by the PPP in November 2024. Lawmakers appear increasingly aware of the rapid pace of technological change, accelerated by the artificial intelligence revolution and its subsequent demand for semiconductors, a development that has not gone unnoticed even amid their longstanding bickering.
The bill stipulates that a special committee for the semiconductor industry be set up under the presidential office, to develop a five-year road map. However, the legislation does not address the industry’s demand that certain workers be exempt from the 52-hour workweek. In fact, disagreement over whether to strictly enforce the 52-hour limit had prevented the two parties from finalizing the bill until the PPP relented.
The bill includes a clause stating that the issue of work hours can be discussed further in the future. However, industry watchers are unsure whether the bill, as written, will achieve its goals. The 52-hour workweek is intended to protect workers’ labor rights, preventing excessive overtime that could harm health and work-life balance — a concern particularly relevant given Korea’s historically grueling and competitive work culture.
The semiconductor industry is racing against time and requires massive investment. Rival nations with leading semiconductor companies, including Taiwan and China, operate on long, flexible hours as they compete to secure a top position in this vital and highly competitive sector. Taiwanese foundry giant TSMC operates three shifts a day, a system dubbed “Night Hawk” that helped the company grow into its current position. Chinese tech companies are known for adopting a work culture featuring long hours, commonly referred to as “996,” in which employees work six days a week, from 9 a.m. to 9 p.m. As a result, they have caught up with Korean memory chip makers. Japan, meanwhile, allows exemptions for highly skilled employees.
Last year, semiconductor R&D workers were granted up to six months of relief from the standard 52-hour workweek. Since the industry typically requires projects lasting eight months to a year, companies have been requesting a further extension of the exemption period and permission for employees to take long-term leave. The proposal states that any such arrangement would occur with written consent from the employee.
In this new global landscape, a nation’s industrial competitiveness and the global market it participates in are likely to determine its future growth. To achieve that goal, both the political sector and the industry must get on the same page. Maintaining Korea’s strength in semiconductors, which currently relies on memory chips, and investing in more advanced technologies will require a willingness to step out of comfort zones and adopt flexible work schedules. It should not come at the expense of any affected party — whether the bill writers, with their political support, or industry personnel. However, efforts to find a formula that works must continue.