South Korea’s ruling People Power Party and the main opposition Democratic Party of Korea failed to reach a consensus on the Semiconductor Special Act, which exempts researchers in the semiconductor industry from the country’s 52-hour workweek cap. Efforts to pass the bill hit a roadblock after Democratic Party leader Lee Jae-myung abruptly withdrew his support for flexible working hours.
The National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee reviewed the bill during a subcommittee session on Feb. 17 but failed to find common ground. Although both parties agreed to revisit the bill in the next session, they remain at odds over the 52-hour workweek exemption. Without a resolution, Korea’s leading chipmakers will not be able to benefit from the Semiconductor Special Law’s provisions, such as subsidies and facility support.
Kim Won-i, a Democratic Party lawmaker and chair of the committee, argued that the 52-hour workweek exception should be addressed under the Labor Standards Act rather than the Semiconductor Special Act. “The Democratic Party’s position is first to advance the other agreed-upon aspects of the bill,” Kim said. People Power Party lawmakers countered that the rigid 52-hour workweek limit could hinder the growth of the country’s semiconductor industry.
Despite political differences, lawmakers from both sides acknowledge the importance of government support in maintaining Korea’s position in the global semiconductor market. This is why both parties proposed the Semiconductor Special Act, also known as the K-Chips Act, to expand subsidies and tax benefits for chipmakers. The bill passed the National Assembly’s Strategy and Finance Committee’s subcommittee session on Feb. 11, increasing its chances of being passed in the plenary session. But the bill failed to advance due to disagreements over the 52-hour workweek exemption.
Currently, Korea supports the semiconductor industry through tax credits for facility investments. The U.S. and Japan provide both tax incentives and government subsidies. Business leaders and policymakers have been calling for similar support measures so domestic chipmakers can remain competitive in the global semiconductor market.
Such calls received bipartisan support from lawmakers, but the 52-hour workweek exception for researchers emerged as a contentious issue. Democratic Party leader Lee said on Feb. 3, “I agree with allowing working hour flexibility for high-income researchers and developers,” raising hopes that legislative deadlock could be resolved. But Lee reversed his stance two days later, questioning whether longer working hours were necessary to foster the semiconductor industry. In a National Assembly speech on Feb. 10, he added, “Securing international competitiveness through extended working hours goes against labor rights.”
The Democratic Party proposed passing the Semiconductor Special Act without making exceptions to the 52-hour workweek cap. Instead, they suggested addressing the workweek exemption separately through amendments to the Labor Standards Act’s “special overtime” provision, which allows exceptions if pre-approved by the Minister of Employment and Labor. The industry has criticized the system as “too rigid” for the fast-moving semiconductor sector.
The People Power Party has bucked the Democratic Party’s proposal, stating, “No other country in the world imposes a 52-hour limit on semiconductor researchers.”
The legislative deadlock has left chipmakers frustrated. Experts warn that the delay could weaken Korea’s global competitiveness in the semiconductor sector. “The U.S. and China are investing billions of dollars to bolster their semiconductor industries, while Korea is now forced to compete with rivals without any support,” said Kim Joungho, a professor at KAIST.
