South Korea’s semiconductor industry is pressing to ease working-hour restrictions on R&D staff, citing a talent shortage driven by population decline and a rising preference for medical studies. As a key driver of the national economy, the sector faces both a chronic skills gap and the constraints of the 52-hour workweek, fueling concerns that these limitations may hinder S. Korea’s global competitiveness in the tech race.
According to industry sources, the local semiconductor sector is urging the government and National Assembly to introduce a “Korean-style White Collar Exemption” for working hours through the proposed Semiconductor Industry Promotion Act.
Originating in the U.S. in 1938, the White Collar Exemption exempts high-level managers, specialists, and high-income earners from working-hour regulations, recognizing that certain roles are unsuited to productivity measurement based on hours alone. Under the U.S. system, employees earning over $684 a week in managerial or professional roles and those with an annual income exceeding $107,432 qualify for the exemption.
Japan adopted a similar approach in 2018 witha system for exempting high-income professionals in non-production roles, such as financial product developers, analysts, and R&D specialists in new product areas, from working-hour limits. In Japan, employees earning over 10.75 million yen ($70,802.19) annually qualify for this exemption.
A semiconductor industry representative explained, “Working hour regulations were originally introduced to protect health in the manufacturing-centered industrial era, but applying these limits indiscriminately to professionals and high-income earners is far from ideal. If S. Korea, like the U.S., could make overtime pay more efficient for high earners, it could narrow income disparities, reduce companies’ labor costs, and create more room for additional hiring and improved working conditions.”
The S. Korean semiconductor industry is voicing growing frustration that restrictions on working hours are holding back critical research and development efforts. Samsung Electronics, for example, applies a flexible monthly work-hour scheme for its R&D staff, allowing an average of 52 hours per week over a month rather than enforcing weekly limits.
Similarly, SK Hynix operates a 2-4 week average system for its R&D teams. However, industry voices suggest this flexibility is insufficient to compete with other countries where researchers are known to work around the clock to advance technology. Only a small fraction of core researchers in South Korea can work up to 68 hours a week, a restriction the industry sees as inadequate for sustaining global competitiveness. “In the U.S. and Taiwan, when needed, teams will even work seven days a week to stay ahead with cutting-edge semiconductor technology,” noted another industry insider.
However, since only a small fraction of core researchers in S. Korea can work up to 68 hours a week, a restriction the industry sees as inadequate for sustaining global competitiveness. “In the U.S. and Taiwan, when needed, teams will even work seven days a week to stay ahead with cutting-edge semiconductor technology,” noted another industry insider.
Nonetheless, there are significant cultural and practical hurdles to extending work hours in the nation. The general view on long working hours remains largely unfavorable, and without additional compensation, employees are likely to resist longer work schedules. Indeed, in 2019, former Democratic Party lawmaker Kim Byung-kwan, previously CEO of a gaming company, proposed a bill to exempt the top 3% of income earners from working-hour regulations. However, the bill failed to pass the National Assembly.
