[Op-Ed] Easing the 52-Hour Workweek Rule Is Key to the Semiconductor Special Act

The Cause of the Crisis in Korea’s Semiconductor Industry: Rigid Working-Hour Regulations

NVIDIA and TSMC devote enormous amounts of time to R&D

The United States has no cap on maximum weekly working hours, but pays 1.5 times the regular wage for overtime

China’s IT industry follows the “996” practice: working from 9 a.m. to 9 p.m., six days a week

The National Assembly is now seriously discussing the “Semiconductor Special Act,” which includes a provision recognizing exceptions to the 52-hour workweek regulation. The Semiconductor Special Act contains a “white-collar exemption” clause. This provision would exempt R&D workers from the 52-hour workweek rule, with the aim of enabling autonomous research and development free from rigid working-hour regulations.

One of the causes of the crisis in Korea’s semiconductor industry is said to be the rigid 52-hour workweek regulation. Critics have pointed out that the 52-hour workweek not only lowers productivity in the domestic semiconductor industry, but also makes it difficult for semiconductor engineers and researchers to maintain smooth collaboration and continuity in their work. By contrast, advanced countries such as the United States and Japan either exempt high-income professionals from working-hour regulations or provide fair compensation for additional work, thereby enabling R&D talent to engage in concentrated research.

In the semiconductor industry, where R&D capability directly determines technological competitiveness, global rivals have secured technological advantages through long hours of intensive research and development. While global firms such as NVIDIA and TSMC devote enormous amounts of time to R&D, Korean semiconductor companies remain bound by the 52-hour limit and are inevitably falling behind in the competition. Under these circumstances, the white-collar exemption clause is being regarded as an essential measure for the semiconductor industry.

Let us look at the status of working-hour regulations in advanced countries. The United States does not impose a maximum weekly working-hour limit. Instead, it enforces a policy requiring that work beyond 40 hours a week be compensated at no less than 1.5 times the regular wage. Japan has introduced and implemented the “Highly Professional System,” which exempts high-income professionals from working-hour regulations. China, too, has the “996” practice in the IT industry, meaning employees work from 9 a.m. to 9 p.m., six days a week.

There has been strong pushback against controlling working hours in fields that require intensive R&D, with many arguing that it reduces efficiency and is also disadvantageous to workers themselves. The need to introduce a white-collar exemption—an exception to the 52-hour workweek—has been consistently raised, especially in advanced strategic industries where R&D capability is directly linked to technological competitiveness. In particular, such demands have been strong in the semiconductor industry. While Korean semiconductor companies have had their hands tied by the 52-hour regulation, global competitors such as NVIDIA and TSMC have secured technological prowess by concentrating enormous amounts of time on R&D.

The 52-hour workweek not only hinders productivity but is also harmful to workers. It suggests that a fair society rooted in respect for labor is eroding. If the Semiconductor Special Act, including the easing of the 52-hour workweek regulation, is passed by the National Assembly, it will have positive effects not only by increasing productivity in the semiconductor industry but also by improving worker welfare.

The “Semiconductor Special Act” is an important first step toward the sustainable development of Korea’s semiconductor industry. Therefore, the active implementation of the white-collar exemption provision appears necessary.

Hayoung Jung

Intern Researcher, Center for Free Enterprise (CFE)

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Original title: [칼럼] 반도체 특별법, 주 52시간 규제 완화가 핵심이다

Author: Ha-young Jung

Date: 2024-12-17

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&idx=27181