South Korea has extended the special overtime allowance period for semiconductor research and development from three to six months. The move is a temporary measure to ease labor restrictions in the chipmaking sector, particularly as the proposed Semiconductor Special Act, which includes broader exceptions to the 52-hour workweek rule, remains stalled in the National Assembly.
The government announced this measure during a meeting chaired by acting president Choi Sang-mok on March 12. The special extended overtime allowance system allows employees to work up to 64 hours per week, exceeding the standard 52-hour workweek cap, with the approval of the Minister of Employment and Labor and individual employee consent.
The new measure introduces a one-time approval period of six months for semiconductor R&D workers. Companies can either continue with the existing system of three-month approvals, which can be renewed three times per year, or opt for the new six-month exemption, which can be renewed once a year.
However, under the new six-month exemption policy, workers will be permitted to work up to 64 hours per week for the first three months, but the cap will be lowered to 60 hours per week in the latter half. Additionally, companies will be required to provide medical check-ups for workers as a mandatory safeguard to protect their health.
The government also plans to simplify the extension approval process and establish an online reporting center to prevent abuses, such as forcing employees to work overtime without proper compensation.
Since implementing the new policy only requires modifications to the Ministry of Employment and Labor’s internal guidelines, it is expected to take effect as early as next week. “We must act now to support the semiconductor industry before it falters,” said Employment Minister Kim Moon-soo. He acknowledged the measure as a temporary fix, saying, “Even if it’s just administrative tinkering, we will do what we can.”
Business and economic organizations, including the Federation of Korean Industries and Korea Enterprises Federation, have welcomed the move.
But industry insiders view it as a stopgap solution. “The exemption only applies to R&D, but considering that R&D is closely linked to manufacturing and other processes, the policy should be expanded to include other areas where collaboration is necessary,” said a semiconductor company official.
A government official described the move as an “emergency measure” to protect the semiconductor industry, which is considered a national strategic asset. The official stressed that passing the Semiconductor Special Law, which includes exemptions to the 52-hour workweek cap, is the ultimate goal.
The Korea Enterprises Federation also emphasized the need to amend the Labor Standards Act to introduce more flexible working hours. Since the special overtime system was initially rolled out as a temporary measure to address the limits of the 52-hour workweek restriction, companies argue that a full-scale overhaul of the current work-hour system is seen as the solution.
Calls for more work-hour flexibility have been growing in other sectors. At a government conference on March 11, Shin Sung-gyu, Chief Financial Officer at AI chip startup Rebellions, pointed out that global competitors work hard to ensure productivity, even choosing flights with Wi-Fi to avoid development delays. “The rigid 52-hour workweek cap puts Korean semiconductor companies at a disadvantage,” he said.
Similar concerns have been raised in the shipbuilding and battery manufacturing industries. A representative from a small shipbuilding company admitted that at times when the workload surged unpredictably, employees have worked past the 52-hour limit.
However, labor unions strongly opposed the new measure. The Federation of Korean Trade Unions criticized the government for “actively dismantling the 52-hour workweek limit.” The Korean Confederation of Trade Unions also accused the government of ”sacrificing workers’ health to safeguard corporate profits.”