Industry, labor ministers clash over 52-hour workweek exemption in 'special' zones
The industry chief said the cap stands in the way of growth, citing an experience in China, but his labor counterpart said Korean firms are doing fine as is.
Industry Minister Kim Jung-kwan responds to a panelist's question during a Kwanhun Club forum at the Korea Press Center in Jung District, central Seoul, on Aug. 6.YONHAP
The industry and labor ministers have publicly expressed sharply different views over whether to exempt some workers from the country's 52-hour workweek cap, highlighting divisions over how far labor regulations should be eased to boost competitiveness.
Under the Labor Standards Act, employees are generally prohibited from working more than 52 hours a week — a standard 40-hour workweek plus up to 12 hours of overtime.
Industry Minister Kim Jung-kwan said Thursday that companies within the proposed "megaspecial zones" should be allowed to operate outside the limit.
"The system should not stand in the way of young people who are willing to work hard," Kim said during a Kwanhun Club forum held at the Korea Press Center in Jung District, central Seoul.
The megaspecial zones are designed to economically foster regional strategic industries, including the proposed semiconductor cluster in the Gwangju and Jeolla region. The legislation for the area is intended to accelerate balanced regional development by granting regulatory exemptions, tax and financial incentives and support for attracting skilled workers.
The proposed law is also reportedly set to exempt managers and researchers in the top 3 percent of income earners from the 52-hour cap and overtime, night and holiday pay requirements, instead allowing employers to provide fixed allowances.
Kim argued that the issue should be viewed in the context of competition with China, which he described as Korea's biggest rival. He recalled an episode he heard while visiting China on a business trip during his time in the private sector.
"I was told that when an information technology company in Chongqing tried to introduce the '996' work schedule — from 9 a.m. to 9 p.m., six days a week — employees complained that they couldn't compete with other companies if they worked only those hours," he said.
"I was shocked to hear that the company eventually switched to a schedule that ran until midnight," he added.
Kim said competition within China is extremely intense.
"Chinese workers also believe they can receive their salaries only if their companies continue to grow, so they actually worry when companies reduce working hours," he said.
"The system should not undermine the motivation and determination of people who want to work hard and achieve something. We need to review the working-hours system not only for research and development but across advanced industries, including startups."
Labor Minister Kim Young-hoon speaks during a ceremony at the Gwangju Government Complex in Gwangju on July 30.MINISTRY OF EMPLOYMENT AND LABOR
Kim's remarks contrast with the more cautious stance taken by Labor Minister Kim Young-hoon on introducing exceptions to the 52-hour cap.
The labor minister noted that Korea's major semiconductor companies already operate under the current 52-hour system.
"They are generating enormous profits even without an exemption," Kim Young-hoon said.
"It's not as though we've been overtaken by all of our overseas competitors," he added. "The way the issue has been framed — as if allowing exceptions to the 52-hour limit is absolutely essential — has made it difficult to have a healthy discussion."
Kim Young-hoon said differences between labor and management cannot be eliminated entirely, but reasonable alternatives can be found based on facts.
"The country's two major labor federations have proposed a meeting with the president and broader social dialogue on this issue, and we will move forward through sufficient communication with labor groups," Kim Young-hoon said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
