South Korea is reportedly considering a significant easing of labor regulations for a new semiconductor cluster planned in Gwangju, a city in the country's southwest.
According to officials with knowledge of the matter who spoke on Friday, the government is assessing plans to relax certain labor requirements, including the current weekly 52-hour work limit. Officials from the Ministry of Employment and Labor and the National Assembly indicated that the ministry briefed some lawmakers from the ruling Democratic Party on Monday regarding the direction of a proposed special labor law specifically for the Gwangju industrial cluster.
The sources disclosed that the Labor Ministry's report includes a proposal to remove the 52-hour weekly work cap for management and research personnel in the top 3% of earners. Under this plan, these employees would no longer be mandated to receive overtime pay, night shift premiums, or holiday overtime allowances, which would instead be replaced by a uniform fixed allowance.
South Korea implemented its 52-hour weekly work law in 2018, aiming to prevent excessive fatigue. The legislation limits weekly overtime to 12 hours, setting a maximum total workweek of 52 hours.
Beyond this, the government is also considering extending the calculation period for flexible working hours from the current one month to six months. The flexible work system is designed to allow employees to concentrate their work during specific periods, as long as total working hours do not exceed the regulated limit over a baseline period. If the baseline period is extended to six months, employees could work up to 80 hours per week for 16 consecutive weeks, with shorter hours for the remaining 10 weeks, thereby maintaining an average of 52 hours per week over the 26-week period.
The government is also evaluating a plan to extend the employment period for fixed-term workers by an additional two years, from the current two-year limit, provided the relevant workers agree.
However, the labor sector is strongly opposing these proposed deregulation measures, arguing they would lead to worker overwork and only create poor-quality jobs within the new semiconductor cluster. In a statement, the Korean Confederation of Trade Unions criticized the plan, stating that if jobs in the new semiconductor cluster are predominantly four-year contracts, expand the use of temporary agency workers, and permit long hours without overtime pay, such positions cannot be considered future industry jobs, let alone quality work.
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