A semiconductor bill without a workweek exemption?
Published: 07 Feb. 2025, 00:00
Jin Sung-joon, the head of the Democratic Party (DP)'s policy committee, announced Wednesday during a policy briefing that the party intends to move forward with the Semiconductor Special Act by prioritizing noncontentious provisions while deferring discussions on the divisive issue of exempting semiconductor research and development (R&D) workers from the 52-hour workweek limit. This statement marks a departure from DP Chairman Lee Jae-myung's earlier stance.
During a parliamentary forum, Lee had expressed openness to the exemption, stating "I found myself at a loss when asked why we shouldn’t allow workers to concentrate their hours as needed." His remarks had been interpreted as part of a broader rightward shift, alongside policies such as the repeal of the financial investment income tax and a temporary suspension of cryptocurrency taxation. However, in the end, the DP opted to push the semiconductor bill forward while postponing discussions on the workweek issue.
This recalibration appears to be a response to mounting internal and external criticism over Lee’s perceived willingness to accommodate the exemption. Pro-labor factions, including the country’s two major labor federations, as well as lawmakers on the parliamentary Environment and Labor Committee, voiced strong opposition. Five-term lawmaker Lee In-young directly challenged the DP chair, arguing that advocating for flexible work hours contradicts the DP’s labor values. "This is neither pragmatism nor progress but regression," he asserted, warning that "a simplistic rightward shift is the wrong answer."
Perhaps in reaction to such resistance, the DP chair struck a more conciliatory tone during a meeting with business leaders on Jan. 5, stating "Isn’t it better to achieve 50 out of 100 rather than nothing at all?"
The Semiconductor Special Act aims to address Korea’s lagging state support in comparison to rival nations by providing tax incentives, subsidies and infrastructure investment. However, legislative progress has been stalled due to the DP’s opposition to including exemptions from the 52-hour workweek regulation. Meanwhile, China is advancing its AI development, exemplified by the successful launch of DeepSeek, while Korea remains embroiled in political turmoil, with an impeachment trial against the president following a recent declaration of martial law. The DP’s continued inability to resolve this longstanding debate over work hours is regrettable, given the urgent need to bolster Korea’s competitiveness in high-tech industries.
Jin also criticized the recent proposal of the Ministry of Industry and Trade, which seeks to incorporate the unique needs of the semiconductor sector into the government’s approval process for extended work hours. He dismissed it as "a move that would poke holes in the existing labor framework." A senior government official lamented that passing the Semiconductor Special Act without addressing the workweek exemption would be akin to "selling a bun without the filling." If the DP refuses to consider such exemptions, what alternative solutions does it propose?
Lee's vacillation on this issue casts doubt on the sincerity of his professed pragmatism. Since late last year, he has distanced himself from previous policy positions, shelving a universal Covid-19 relief fund proposal, embracing a growth-first economic strategy, emphasizing the Korea-U.S.-Japan alliance and even hinting at inheritance tax reductions. However, if he continues to retreat whenever met with internal opposition, these shifts risk being perceived as little more than opportunistic rhetoric hastily crafted with an eye toward the coming presidential election in the event of impeachment. Such inconsistency could undermine his leadership credibility at a crucial political juncture.
Translated using generative AI and edited by Korea JoongAng Daily staff.
During a parliamentary forum, Lee had expressed openness to the exemption, stating "I found myself at a loss when asked why we shouldn’t allow workers to concentrate their hours as needed." His remarks had been interpreted as part of a broader rightward shift, alongside policies such as the repeal of the financial investment income tax and a temporary suspension of cryptocurrency taxation. However, in the end, the DP opted to push the semiconductor bill forward while postponing discussions on the workweek issue.
This recalibration appears to be a response to mounting internal and external criticism over Lee’s perceived willingness to accommodate the exemption. Pro-labor factions, including the country’s two major labor federations, as well as lawmakers on the parliamentary Environment and Labor Committee, voiced strong opposition. Five-term lawmaker Lee In-young directly challenged the DP chair, arguing that advocating for flexible work hours contradicts the DP’s labor values. "This is neither pragmatism nor progress but regression," he asserted, warning that "a simplistic rightward shift is the wrong answer."
Perhaps in reaction to such resistance, the DP chair struck a more conciliatory tone during a meeting with business leaders on Jan. 5, stating "Isn’t it better to achieve 50 out of 100 rather than nothing at all?"
The Semiconductor Special Act aims to address Korea’s lagging state support in comparison to rival nations by providing tax incentives, subsidies and infrastructure investment. However, legislative progress has been stalled due to the DP’s opposition to including exemptions from the 52-hour workweek regulation. Meanwhile, China is advancing its AI development, exemplified by the successful launch of DeepSeek, while Korea remains embroiled in political turmoil, with an impeachment trial against the president following a recent declaration of martial law. The DP’s continued inability to resolve this longstanding debate over work hours is regrettable, given the urgent need to bolster Korea’s competitiveness in high-tech industries.
Jin also criticized the recent proposal of the Ministry of Industry and Trade, which seeks to incorporate the unique needs of the semiconductor sector into the government’s approval process for extended work hours. He dismissed it as "a move that would poke holes in the existing labor framework." A senior government official lamented that passing the Semiconductor Special Act without addressing the workweek exemption would be akin to "selling a bun without the filling." If the DP refuses to consider such exemptions, what alternative solutions does it propose?
Lee's vacillation on this issue casts doubt on the sincerity of his professed pragmatism. Since late last year, he has distanced himself from previous policy positions, shelving a universal Covid-19 relief fund proposal, embracing a growth-first economic strategy, emphasizing the Korea-U.S.-Japan alliance and even hinting at inheritance tax reductions. However, if he continues to retreat whenever met with internal opposition, these shifts risk being perceived as little more than opportunistic rhetoric hastily crafted with an eye toward the coming presidential election in the event of impeachment. Such inconsistency could undermine his leadership credibility at a crucial political juncture.
Translated using generative AI and edited by Korea JoongAng Daily staff.
with the Korea JoongAng Daily
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