Minister of Trade, Industry and Energy Kim Jeong-gwan (pictured) said of applying an exception to the 52-hour workweek in semiconductor research and development (R&D), “The system should not forcibly stand in the way of the will of young people to work.” This is interpreted as an intention to include an exception clause in the ‘Mega Special Zone Act,’ which is being advanced in tandem with the three mega projects. Not only backlash from organized labor but also conflict with the Ministry of Employment and Labor appears inevitable.

At the Kwanhun Forum held at the Korea Press Center in Seoul on the 6th, Minister Kim said, “The 52-hour workweek issue is not unique to semiconductors.” He added, “If the 52-hour workweek issue is reduced to a youth issue, that means youth jobs disappear accordingly,” and “There is a need to adjust working-hours rules across advanced industries, including not only R&D but also startups.”

Minister Kim went on to mention a case in which a Chinese information technology (IT) company sought to introduce ‘996’ (starting work at 9 a.m., leaving at 9 p.m., six days a week), saying, “I heard that employees at that company pushed back, saying, ‘If we work like that, can we compete with other companies?,’ and in the end the system was changed to working until midnight.”

His remarks are read as a signal to push deregulation of labor rules, including excluding the 52-hour workweek limit, in regions where facilities for the three mega projects such as the southwestern semiconductor cluster will be located. The Ministry of Trade, Industry and Energy has directly and indirectly indicated that related content should be included in the Mega Special Zone Act.

Opposition from labor is expected to intensify. The Korea Federation of Trade Unions and the Korean Confederation of Trade Unions issued a joint statement on the 3rd to protest. Minister Kim Young-hoon of the Ministry of Employment and Labor stated at a meeting the previous day, “I said that even in the Special Act on Semiconductors, if an exception to the 52-hour workweek is not included, it is like ‘a steamed bun without filling,’ but even without it, enormous results are being delivered now,” expressing opposition.

Minister Kim Jeong-gwan also reiterated the need to move at speed in creating the semiconductor cluster.

Kim Jeong-gwan “If I had my way, I would like to build a nuclear power plant in the capital region”

He explained, “It is not merely that a speed race is unavoidable; we have to go even faster,” adding, “Demand cannot be met with the Yongin semiconductor fab alone, and because plants cannot be built in the capital region in the power sector, we identified Honam as a new production-base hub.” He also said, “If I had my way, it is my position that I would like to build a nuclear power plant in the capital region.”

To voices opposing expanding nuclear power, he replied, “In a country like ours, where renewable energy is weak and has limitations, nuclear power is unavoidable.”

On the payment of performance bonuses of ‘N% of operating profit,’ sparked by controversy over semiconductor bonuses, he said, “At minimum, under a system in which shareholders consent through a board meeting or a general meeting of shareholders, one cannot fault giving large incentives,” and added, “Without such procedures, a company making decisions that run counter to shareholder interests and investor interests is an overreach.” Observers say Minister Kim has opened the door to the possibility of revising the Commercial Act and the Capital Markets Act.

Minister Kim said there is a possibility that the result of a Section 301 investigation under U.S. trade law related to ‘overcapacity’ could be announced at the end of this month, adding, “Between the Korean and U.S. trade authorities, a consensus has formed on a 15% cap.” However, noting that 15% is not the ultimate goal, he said, “Please understand that the target for KoreaU.S. tariff levels is a level not disadvantageous relative to competitor countries.”