Local Government Heads to Set Minimum Wage and Working Hour Exceptions in "Mega Free Zones"
On May 18, the People Power Party announced its "economic pledges," which include the establishment of a new "Regulatory Innovation Agency" to oversee and manage various regulations on a permanent basis.
The party's Policy Headquarters stated in a press release that "rather than populist pledges that borrow money to distribute cash with the sole aim of winning the immediate election, what is needed is a complete overhaul of the economic structure for the future of Korea and the next generation." The headquarters then introduced the related pledges.
Kim Moonsoo, the People Power Party's presidential candidate, is campaigning near Jeondong Cathedral in Jeonju, Jeonbuk on the 17th. Photo by Yonhap News
First, the People Power Party announced plans to establish the Regulatory Innovation Agency, which will integrate the regulatory reform functions and regulatory sandbox systems that are currently scattered across various ministries and are not fulfilling their intended roles.
Additionally, the party pledged to allocate 1% of the government R&D budget to regulatory innovation, and to enact a so-called "Basic Act on Free Economic Innovation" to prevent Korea from being the only country to apply regulations on new industries that do not exist elsewhere.
The party also proposed easing the procedures for changing employment rules to reform the wage system so that compensation reflects the amount of work performed. It plans to relax requirements for flexible working arrangements to allow more autonomy in the implementation of the 52-hour workweek, and to extend the minimum unit period for flexible and selective working hours systems to at least half a year (six months). The party will also pursue measures to exempt high-income professionals from the 52-hour workweek regulation.
The introduction of a "Mega Free Zone" was also discussed, under which, if a local government head requests regulatory exceptions necessary to attract businesses and boost the economy, the central government will actively implement them. In such Mega Free Zones, local government heads will be granted the authority to apply exceptions to regulations such as the minimum wage system and working hour restrictions.
The party announced plans to develop a "Comprehensive National Land Development Plan Based on Energy" to strengthen industrial competitiveness in the era of artificial intelligence (AI), including expanding electricity supply. The party also pledged to invest at least 5% of the national budget in R&D and to increase the scale of national strategic technology R&D to 10 trillion won within five years. The pledges include abolishing the preliminary feasibility study for R&D projects, which will shorten the project initiation period by up to three years compared to the current process.
To respond to changes in the global trade environment and supply chains, the party will expand and reorganize the Office of Trade Negotiations into the so-called "Economic Security Negotiations Headquarters," and will increase the supply chain stabilization fund by at least 10 trillion won annually. The party also plans to establish the "Korea Technology 3+1 (AI, Bio, Quantum + Space) Committee," chaired regularly by the President, and to invest over 100 trillion won in initiatives such as the "AI Public-Private Fund" to build an artificial intelligence ecosystem.
The party proposed enacting the "Autonomous Mobility Operator Act" to provide an institutional foundation for the commercialization of autonomous vehicles, as well as the so-called "Industrial AI Transition Promotion Act" to establish norms and support measures for the industrial transition to AI.
As part of its support for the venture ecosystem, the party pledged to expand the government's parent fund resources to a total of 20 trillion won by 2030 and to foster 20,000 TIPS (Tech Incubator Program for Startups) companies over the next five years.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
