The South Korean government has postponed its decision on whether to apply exemptions to the 52-hour workweek for companies in mega project zones. Amid differing views between the Ministry of Trade, Industry and Energy and the Ministry of Employment and Labor regarding industrial competitiveness and labor rights, the Blue House stated that the success of mega projects is not directly linked to the relaxation of the 52-hour workweek, emphasizing the need for discussions and agreement with local communities and labor groups.
A senior official from the Blue House said during a briefing following the second joint inspection meeting on mega projects, chaired by President Lee Jae-myung, "The success of the mega project is not directly related to the 52-hour workweek." He added, "We are considering that this matter requires discussions and agreement with local communities and labor groups."
The Ministry of Trade argues that to enhance the global competitiveness of advanced industries such as semiconductors and artificial intelligence (AI), it is necessary to allow flexible working hours for R&D personnel. They contend that intensive work is unavoidable during the technology development and production stabilization phases, thus necessitating special exemptions for mega project zones.
Conversely, the Ministry of Employment is cautious about broadly recognizing exceptions to the 52-hour limit based on specific industries or regions. There are concerns that exemptions could lead to longer working hours and that demands for exceptions could spread to other industries.
Considering the disagreements between ministries and the backlash from labor groups, the government has decided not to unilaterally pursue exemptions to the 52-hour workweek. However, the introduction of exemptions has not been completely withdrawn, and it is expected to resurface as a contentious issue during future discussions and the legislative process for the special law on mega project zones.
Separately from the 52-hour workweek exemptions, the government plans to expedite the establishment of a regulatory framework to support mega projects. A special law for mega project zones is set to be enacted by the end of the year to shorten the approval and environmental assessment periods and to ensure the rapid supply of infrastructure such as electricity, water, and transportation.
The Blue House will establish a dedicated organization for mega projects, and the Prime Minister's Office will set up a "Mega Project Intergovernmental Support Council." This initiative aims to coordinate approval and infrastructure issues across various ministries to prevent delays in corporate investment schedules due to administrative procedures.
During the meeting, President Lee emphasized the need for comprehensive checks to ensure that issues such as bureaucratic barriers, regulations, and infrastructure shortages do not dampen corporate investment intentions or delay procedures. He instructed Prime Minister Han Seung-soo to directly oversee related matters.
He also stressed the importance of simultaneously advancing related procedures to significantly reduce the time required and to continuously improve regulations, stating, "We need to go beyond speed and engage in a decisive battle."
Investment execution by region is also set to intensify. In the Chungcheong region, six companies, including SK Hynix and Samsung Electronics, are set to begin construction or expand facilities on a 246 trillion won project this year.
In the Yeongnam region, eight companies, including SK, Samsung Electronics, and Hyundai Motor, are launching a 107 trillion won investment project this year. Additionally, a separate 57 trillion won R&D project is underway. The total investment amount from companies starting this year in the Chungcheong and Yeongnam regions is expected to reach 353 trillion won.
Progress is also being made on relocating the Gwangju military airport, a key factor in establishing a semiconductor cluster in the Honam region. President Lee has directed that the Gwangju military airport's functions be temporarily relocated to another military airport by mid-2028, allowing the existing air force base to be utilized as a semiconductor industrial complex.
The government plans to complete the relocation of military facilities on the 2.5 million pyeong site of the Gwangju military airport by the second half of 2028. Even before the military airport functions are moved, the government will first prepare the site designated for the ammunition depot to support the early construction of semiconductor fabs. Discussions are also ongoing between South Korea and the U.S. regarding the relocation of U.S. military facilities.
President Lee urged that even with the temporary relocation, efforts should be made to ensure that industrial complexes can begin construction early on the land near the military airport. He expressed a desire for the Honam semiconductor cluster to be executed as swiftly as that in Kumamoto, Japan.
The government has also outlined a schedule for supplying the necessary infrastructure for the semiconductor cluster. Power supply to the Honam semiconductor industrial complex is planned to begin by the end of 2028, with plans to secure 650,000 tons of water by 2030. The Yongin semiconductor cluster is set to receive a phased power supply of 14.7 GW by 2041.
To ensure that the benefits of large-scale investments are shared with partner companies and local communities, the government is pursuing a win-win strategy. Over the next decade, 1 trillion won will be invested in a "Together Growth Project" that fosters collaboration between large and small enterprises from technology development to mass production.
Additionally, a 5 trillion won win-win trade finance initiative will be established to alleviate the financial difficulties of export materials, parts, and equipment companies, along with a separate 5 trillion won semiconductor fund.
In the field of physical AI, the government reported plans to purchase over 700 humanoid robots and more than 1,000 quadrupedal robots by 2030 to create an initial market. President Lee directed that the planned purchase scale is "insufficient to create an initial market" and called for a significant expansion of government purchases.
President Lee cautioned against the concentration of mega project outcomes on specific companies or regions, a phenomenon referred to as "K-shaped growth," stating, "It is already too late once investments are made and factories are built." He urged that solutions for inclusive growth should be considered from the early stages of the project, viewing the next year as a "golden time" to accelerate efforts.
* This article has been translated by AI.
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