South Korea’s ruling and opposition parties have agreed to pass more than 110 bills, including the Act on Industry and Framework for Establishing Trustworthy AI (AI Act), during a National Assembly plenary session on Dec. 26. However, the highly anticipated Semiconductor Special Act has been excluded from the agenda. The main opposition Democratic Party of Korea (DPK) opposed the bill, citing labor unions’ resistance to a provision that would exempt semiconductor industry researchers and developers from the country’s 52-hour workweek cap.
This decision underscores the National Assembly’s repeated failure to relax labor regulations that leave South Korea at a competitive disadvantage, even as countries worldwide pour astronomical sums into bolstering their semiconductor industries. The DPK has maintained its stance against creating exceptions for specific sectors. However, semiconductors are not just another industry—they are South Korea’s core strategic asset, with a profound influence on the nation’s economy, security, and geopolitical standing.
Warning signs of decline are already evident. Samsung Electronics, once a leader in high-bandwidth memory (HBM) technology, has begun falling behind in global competition. The consequences of losing competitiveness in semiconductors—an industry pivotal to South Korea’s economic engine—could be catastrophic.
Globally, flexible work hour policies for researchers and developers are the norm. During crises, Taiwan’s TSMC, the world’s leading semiconductor foundry, has operated its research centers 24/7. Similarly, U.S. companies like Nvidia and Micron push their teams to work around the clock to maintain a competitive edge. In stark contrast, South Korea’s rigid 52-hour workweek regulations force research labs to go dark in the evenings—a restriction unique to the country.
In the lead-up to legislative discussions, Samsung Electronics executives reportedly visited lawmakers’ offices, pleading for the bill’s passage, even under a temporary three-year exemption. This highlights the urgency of addressing the regulatory hurdles impeding South Korea’s semiconductor industry.
The political gridlock is fueling economic uncertainty, with exchange rates climbing amid heightened risk perceptions. To safeguard the nation’s credibility and stabilize economic sentiment, lawmakers must show responsibility in managing economic and livelihood issues. Passing the Semiconductor Special Act would be a critical litmus test of their commitment to South Korea’s economic future.
