[1 Year of Yoon Administration]⑩ Yoon, Self-Proclaimed 'Industry Expert,' Faces Mounting Challenges with Working Hours and Radioactive Waste Site

2nd Year of National Administration
'Controversy Over 69-Hour Workweek' and Other Troubles Pile Up

To address the major industrial national agenda items introduced by President Yoon Seok-yeol last year, politically sensitive issues such as working hours reform and the establishment of a high-level radioactive waste disposal facility must be resolved first. We sought expert opinions on the urgent areas that need to be supplemented for the second year of national governance among policies in various industrial sectors, including the national advanced strategic technology support system and energy.

Semiconductors face burden due to high protection technology standards... Cars need groundwork for autonomous driving

President Yoon Suk-yeol visited SK Siltron in Gumi, Gyeongbuk on February 1st and inspected the silicon wafer production facilities with SK Group Chairman Chey Tae-won.
[Image source=Yonhap News]

First, an improvement to the "Special Measures Act on Strengthening and Protecting National Advanced Strategic Industries (National Advanced Strategic Industries Act)" is identified as a supplementary task that must be promoted at the national level. The standards for technology protection regulations are so high that some companies actually hope not to be designated as national advanced strategic technologies. Industry evaluations indicate that this phenomenon is more pronounced among mid-sized and small enterprises than large corporations. Once designated as national advanced strategic technology, companies face protection obligations across all business areas such as related exports and research and development (R&D), which imposes a greater burden on smaller companies. A semiconductor industry official said, "The regulation may become one where only protection targets remain, and nurturing targets disappear."

In the automotive industry, which was expected to grow rapidly since the transition committee period, there are calls to further strengthen various support measures. Support from the Ministry of the Interior and Safety and the Ministry of Science and ICT is needed to establish a domestic 'autonomous driving R&D ecosystem,' and regulatory improvements under the Personal Information Protection Act regarding the 'anonymization of data' accumulated in autonomous driving research have been pointed out as areas needing supplementation. Professor Park Cheol-wan of Seojeong University (Department of Smart Automotive), who serves as the chair of the Presidential Committee on Carbon Neutrality and Green Growth's Energy Company Transition Expert Committee, said, "Government-level support for electrification is minimal," adding, "The private sector difficulties heard under the direction of the president-elect during the transition committee have not yet been systematically reflected."

Previously, the government collected private sector difficulties and discussed reforming the Automobile Management Act with relevant ministries and experts to build a new industrial system linking automobiles and secondary batteries. There is an opinion that basic legislation is needed to establish an ecosystem that manages the entire lifecycle from cradle to grave by assigning separate unique numbers to battery packs of battery electric vehicles and fuel cell stacks (systems) of fuel cell electric vehicles. Although the Ministry of Land, Infrastructure and Transport is leading preparations, there are calls for faster legislative adjustments.

Secondary batteries: global market 'technology leveling' vs. domestic companies' 'super-gap technology'... need to reduce perception gap

President Yoon Suk-yeol and First Lady Kim Keon-hee, having completed their state visit schedule, are seen waving to the welcoming crowd as they disembark from Air Force One at Seongnam Seoul Airport on the 30th.
[Image source=Yonhap News]

Although a global order reshuffle is anticipated this year due to the Inflation Reduction Act (IRA), Carbon Border Adjustment Mechanism (CBAM), and Net Zero Industry Act (NZIA), there are criticisms that policy support related to 'technology leveling' is insufficient. Among academic experts, there have been calls for years to produce affordable LFP (Lithium Iron Phosphate) batteries in preparation for the era of low-cost electric vehicles, but this was neglected in presidential pledges and national agenda items. Currently, as global electric vehicle companies like Tesla increase the adoption of LFP, Korean companies are belatedly entering LFP battery production.

Professor Park said, "It is positive that the government recently included secondary batteries as a national strategic industry," but added, "It is regrettable that nurturing plans are focused on super-gap technology support." He continued, "Even though our companies have concentrated on producing batteries requiring high-level technology, global market share is increasingly being lost to China, which focuses on LFP batteries," adding, "We must coldly acknowledge weaknesses in basics, next-generation, ecosystem, and resources, and consider a Plan B."

Measures to nurture human resources are also urgent. Efforts are concentrated on training personnel in advanced fields, while measures to train 'field workers' are almost nonexistent. There are calls to expand linked human resource development projects and to assign a greater role to the Ministry of Education.

"Speed up establishment of independent energy agency free from political logic"

Korea Hydro & Nuclear Power's Wolseong Nuclear Power Headquarters announced that Shin-Wolseong Unit 1 (pressurized water reactor type, 1 million kW class), which resumed operation on February 23, reached 100% output around 5 a.m. on the 26th. Photo of Shin-Wolseong Unit 1 [Photo by Wolseong Nuclear Power Headquarters] [Image source=Yonhap News]

The need to normalize energy market functions, which the Yoon administration has consistently emphasized since its inception but has not yet realized, was also raised. The government raised electricity rates by about 9% in the first quarter of this year amid concerns over soaring prices. This is only about a quarter of the rate increase expected by the market. Korea Electric Power Corporation and Korea Gas Corporation posted deficits of 32 trillion won and 9 trillion won respectively last year.

Professor Yoo Seung-hoon of Seoul National University of Science and Technology (Department of Energy Policy) said, "We are spending the money earned from selling semiconductors and cars on energy costs," adding, "Electricity prices should be normalized by market principles." Simply put, electricity prices are too low, leading to waste of electricity generated using imported oil and other fuels. He continued, "It has been a year since discussions on establishing an Energy Regulatory Commission began, but there has been no progress," and said, "An independent energy agency that is not swayed by political logic should be created to strengthen energy governance."

The permanent disposal facility for spent nuclear fuel (high-level radioactive waste disposal facility) has been an unresolved issue since Korea began operating nuclear power plants in 1978. Approximately 700 tons of spent nuclear fuel are produced annually. Currently, it is buried in temporary storage pools within nuclear power plant sites. Hanbit Nuclear Power Plant is expected to be 100% full by 2030.

High-level radioactive waste refers to nuclear waste with heat and radioactivity levels so high that exposure within 1 meter for about 10 seconds can be fatal. According to the Nuclear Safety Act, it is defined as nuclear species emitting alpha rays with a heat generation rate of 2kW/㎥, a half-life of over 20 years, and a radioactivity concentration of 4,000 becquerels per gram or more. The International Atomic Energy Agency (IAEA) recommends creating permanent disposal facilities buried 500 meters underground.

The Yoon administration has started discussions to legally determine 'when' to build the facility. In November last year, the High-Level Radioactive Waste Disposal Facility Special Act was submitted to the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee and is currently under subcommittee discussion. However, the 'where' to build has not been decided. Neither the government nor political circles have established plans, nor has the process of public discussion to achieve social consensus begun.

One of the three major reforms: 'Labor'... need to build consensus

On the 4th of last month, at the National Assembly Members' Office Building in Yeouido, Seoul, attending lawmakers and representatives of the Korean Confederation of Trade Unions shouted slogans condemning the '69-hour workweek system' during the 1st policy meeting between the Labor Respect Practice Parliamentary Group and the Korean Confederation of Trade Unions. Photo by Hyunmin Kim kimhyun81@

Regarding the working hours reform, which faced public opposition due to controversy over the 'maximum 69 hours per week,' opinions were raised that there was a lack of consensus on the policy. Professor Yoon Dong-yeol of Konkuk University (Department of Business Administration) said, "Despite explanations that it is not a 69-hour workweek, public opinion remains cold," adding, "This is because there was insufficient explanation of the purpose and content of the flexible working hours system and a lack of government understanding of health rights."

He added, "To restore policy trust, the presidential office and ruling party must show a closely coordinated effort to reconcile differences without confusion," and "Measures to protect non-regular workers in small and medium enterprises without labor unions are also necessary."

Companies in order-receiving industries such as shipbuilding and construction demand that working hours be applied flexibly as an exception. Hwang Yong-yeon, head of labor policy at the Korea Employers Federation, said, "What the government most wants is not to increase statutory working hours but to allow flexible use of working hours within the current system of 40 hours per week plus 12 hours of overtime," adding, "Shipbuilding and construction employers say, 'We cannot break the law, so we would rather give up orders.'"