Lee Chairs Semiconductor Special Act Debate
Shifts Right Despite Support Base Backlash
Some in Party Worry About Progressive Decisions
Major Labor Unions Urge Lee to Halt Discussions
Lee Jae-myung, leader of the Democratic Party of Korea, stated on the 3rd, "While the world is protecting sufficient working environments and reasonably focusing on work when necessary, only we are unable to do so due to formal regulations."
On the same morning at the National Assembly, Lee chaired a policy debate titled "How to Exclude the Semiconductor Special Act from the Labor Hours Act?" and said, "Regarding the semiconductor industry, which is a central part of South Korea's economy, the public expects semiconductors to continue growing as one of the core food sources led by South Korea globally." Amid the recent global impact of China's low-cost, high-performance AI company 'DeepSeek,' Lee judged that urgent discussion is needed on the Semiconductor Special Act, which includes an exemption clause for the 52-hour workweek limit for domestic semiconductor industry R&D personnel.
The reason the Semiconductor Special Act has not passed the National Assembly so far is related to the sharp conflict between industry and labor over the exemption from the 52-hour weekly limit for related R&D positions. The ruling party takes the industry's position into account and argues that overtime exemptions are necessary for the semiconductor industry, citing the need for flexible working hours to secure technological competitiveness. On the other hand, the Democratic Party has opposed this based on the labor sector's stance that "exceptional regulations limited to specific industries can undermine the Labor Standards Act."
Despite backlash from his traditional support base, Lee directly brought up the special act discussion, which is closely related to his recent rightward shift emphasizing 'post-ideology' and 'pragmatism.' This is because he has been steadily aligning his pace to secure votes from the centrist and floating voters ahead of the early presidential election this year. In fact, through policy debates this year, Lee reversed the party's previous positions by deciding to abolish the financial investment income tax and postpone taxation on virtual assets. This is why some in the political sphere predict that Lee may make progressive decisions regarding existing policy directions after this debate.
Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 3rd. Photo by Kim Hyun-min
Concerns within the party about Lee's rightward shift are also detected. A Democratic Party member of the National Assembly's Environment and Labor Committee told Asia Economy in an interview regarding the exemption of the 52-hour weekly limit for semiconductor R&D, "According to Ministry of Labor data, even in South Korea's long working hours environment, Hynix has never applied for special extended work hours, and its performance was good. They do not see problems in management due to working hours."
There is also a view that it is inappropriate for the party leadership to handle the exemption from the 52-hour workweek in the Semiconductor Special Act. A Democratic Party member of the National Assembly's Industry and Energy Committee warned, "Even if discussed, it should be done within the Labor Standards Act. If the special act starts to regulate work forms, every law might insert special provisions in special acts, which could undermine the Labor Standards Act."
With the possibility of an early presidential election looming, Lee's rightward shift could provoke labor union voters, which is another variable. The Korean Confederation of Trade Unions and the Federation of Korean Trade Unions held an emergency press conference at the National Assembly on the same morning, stating, "We strongly oppose the outdated and anachronistic discussion on introducing exemptions from labor hours application." The two major unions demanded the repeal of the bill, saying it "effectively nullifies the Labor Standards Act, which legally establishes the minimum standards for working conditions."
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