Seoul: A bill aimed at bolstering the competitiveness of South Korea's semiconductor industry is currently facing a deadlock in the National Assembly. The controversy centers around a clause that proposes exempting research and development (R and D) workers in the semiconductor sector from the country's standard 52-hour workweek.
According to Yonhap News Agency, lawmakers from both the ruling People Power Party and the main opposition Democratic Party of Korea have been unable to reach a consensus on the contentious clause. The ruling party insists on retaining the exemption, viewing it as a crucial component of the bill. In contrast, the Democratic Party argues that the issue should be addressed under the Labor Standards Act, which would shift responsibility to the Environment and Labor Committee. The opposition party contends that the clause is a minor aspect of the bill and prefers to proceed without it.
The bill, which also encompasses government subsidies, infrastructure support, and research and development incentives, aims to enhance the global standing of South Korea's semiconductor industry. Business lobby groups are particularly keen on allowing R and D professionals to work beyond the legal 52-hour limit, arguing that such flexibility is essential to compete with industry giants like Taiwan's TSMC.
Democratic Party members express concern that granting an exception to the semiconductor industry could lead other strategic sectors to request similar exemptions, potentially undermining the universality of the 52-hour workweek. However, the ruling party dismisses these worries as excessive, advocating for labor and management agreements tailored to the specific conditions of individual companies.
The impasse is further complicated by the position of Democratic Party Chair Rep. Lee Jae-myung, who has shifted his stance on the issue. Initially, Lee expressed sympathy for the idea of offering flexibility to R and D professionals, but later retracted his support, citing concerns about labor rights and international competitiveness.
In addition to the semiconductor bill, Lee has also been vocal about revising the Inheritance Tax Act, advocating for expanded tax deductions for home inheritances while opposing cuts to the highest inheritance tax rate. This stance has drawn criticism from the ruling party, which accuses Lee of ideological inconsistency. Nonetheless, Lee maintains that his party's focus has always been on economic issues.