Key facts
- The South Korean government is considering easing labor regulations for a new semiconductor production cluster in Gwangju.
- Proposed changes include relaxing the 52-hour workweek rule for managers and researchers in the top 3% of income earners.
- The government is also reviewing extending the selective working hour system's basis period from one month to six months.
- Labor unions have voiced strong opposition, arguing the deregulation would lead to overwork and poor job conditions.
The South Korean government is contemplating significant deregulation of labor laws for a forthcoming semiconductor production cluster in Gwangju. Officials are reviewing proposals to ease the 52-hour workweek rule, particularly for managers and researchers earning in the top three percent of incomes. These individuals could be exempted from overtime, night, and holiday work allowances, instead receiving fixed compensation. Additionally, the government is considering extending the basis period for the selective working hour system from the current one month to six months. This extension could allow for intensive work periods, provided the average weekly hours over the six months do not exceed the 52-hour limit. Plans to extend the employment duration for fixed-term workers by an additional two years, with worker agreement, are also being examined.
However, these proposed changes have met with strong opposition from the labor sector. The Korean Confederation of Trade Unions issued a statement arguing that such deregulation would lead to excessive working hours and create "bad jobs" rather than fostering future industry growth. The union criticized the potential for four-year contracts, expanded dispatched labor, and reduced overtime pay as detrimental to workers' well-being.