"China Moves Beyond 996 to 007"... South Korean Semiconductor Industry Bound by '52-Hour Workweek'

China Implements '007' and '896' Work Systems Beyond '996'
South Korea Trapped in '52-Hour Workweek'

"You can never win with people who moderately care about 'work-life balance.' There are always 10-20% of people who can tenaciously hold on and get the job done until the end. Instead, you have to give them triple the salary or provide revolutionary compensation. Half-hearted efforts will lead to total annihilation."

The diagnosis of this expert, one of the key figures behind the Samsung semiconductor legend and who has been in the industry for over 30 years, accurately captures the root cause of the crisis facing the domestic semiconductor industry. In a situation where global competition for advanced technology development is intensifying, Korea's rigid labor time regulation, namely the '52-hour workweek,' could directly hinder industrial progress. There are concerns that Korea will inevitably fall behind China, which regards the '996 (9 a.m. to 9 p.m., 6 days a week)' culture as a long-standing practice.

A worker is moving near Gangnam Station in Seocho-gu, Seoul. Photo by Yonhap News

According to the industry on the 4th, China's tech industry is reportedly moving beyond the so-called '996' culture of working from 9 a.m. to 9 p.m., six days a week, to even '007' (24 hours a day, 7 days a week) work schedules.

There are also recent reports that CATL, the world's largest electric vehicle battery manufacturer, implemented an '896' work system, working from 8 a.m. to 9 p.m., six days a week. A document believed to have been written by CATL on the Chinese SNS Weibo states, "Recently, the market penetration rate of new energy passenger cars exceeded 50% for the first time, but the market environment is becoming increasingly complex and competition fierce," adding that this is "a measure to better fulfill the tasks assigned by the organization."

Of course, China also has statutory working hours. However, if workers agree, overtime can be extended or flexibly managed through labor-management agreements. This is the result of the Chinese government, which is betting its survival on technological advancement, allowing overtime work. Alibaba founder Jack Ma publicly stated that "'996' is a blessing," and executives of Baidu, known as "China's Google," have said, "Don't expect to rest on weekends." According to China's National Bureau of Statistics, the average weekly working hours of Chinese workers have been increasing since 2015, reaching 49 hours last year, the highest level in the past 20 years.

China's strategy to inject human resources 24 hours a day, 365 days a year to accelerate the pace of innovation is already yielding results. In the electric vehicle and battery markets and the display market, China has already overtaken Korea to claim the top spot, and it is posing a threat to domestic companies in the semiconductor market as well.

Accordingly, voices are growing in Korea to strengthen labor time flexibility for advanced industry personnel who want to work more and receive higher compensation. There are calls to move away from the uniform application of the 52-hour workweek and introduce a 'Korean-style White Collar Exemption' that exempts high-income professionals such as research and development (R&D) personnel from labor time regulations.

An industry insider said, "To focus on R&D, it is urgent to create a work environment where people can work freely, but currently, the 52-hour workweek forces people to leave work even when there is work to be done," adding, "The side effects of the current system, which does not respect various forms of work, are becoming apparent, so regulations need to be relaxed quickly."

Meanwhile, not only China but also major advanced countries are implementing systems that enhance labor flexibility. In the United States, a system called 'White Collar Exemption' exempts high-income workers earning more than $684 per week, including executives and professionals, from labor time regulations. Bloomberg reported in August that Nvidia employees sometimes work until 1 to 2 a.m. and regularly work seven days a week.

Japan also implemented the 'Highly Professional' system in 2018, which exempts high-income workers earning over 10.75 million yen annually, such as those engaged in new product R&D, analysts, and management consultants, from labor time regulations. Germany has also introduced the 'Working Time Savings Account' system, where labor and management agree on weekly or monthly working hours, and if workers work more than the regulated hours, they can receive compensation or take time off within 6 months to a year, thus providing flexibility.