"Companies Moving into Redeveloped Daegu Airport Site Exempt from Minimum Wage"...Provision Included in TK Administrative Integration Special Bill

Applied to companies in the Global Future Special Zone
Daegu City: "Phrase likely to cause misunderstanding will be deleted"

It has been reported that the special bill on the administrative integration of Daegu and North Gyeongsang Province includes a provision stating that the minimum wage will not be applied to companies moving into certain areas, such as the redevelopment site of Daegu Airport.

On the 5th, Daegu City stated, "The special bill on the administrative integration of Daegu and North Gyeongsang Province includes a clause on the non-application of the minimum wage in the Global Future Special Zone, in order to create jobs by expanding large corporate investment attraction and securing a shortage of manpower through deregulation and tax reductions," adding, "This is absolutely not intended to infringe on workers' working conditions or rights and interests."

Daegu Airport in Dong-gu, Daegu.

Daegu City and North Gyeongsang Province are reported to have drawn up a plan to designate the redevelopment site of Daegu Airport in Dong-gu, Daegu, as well as Gunwi in Daegu City and Uiseong in North Gyeongsang Province, where the integrated Daegu Airport will be relocated, as the "Global Future Special Zone," and to include this plan in the special bill.

The Global Future Special Zone is similar to 13 other special zones necessary for corporate activities, such as free economic zones and opportunity development zones, and the plan is to develop it into a cutting-edge city through extensive regulatory exemptions and various tax and financial support measures under relevant laws.

Article 113 of the bill on the administrative integration of Daegu and North Gyeongsang Province, submitted by People Power Party lawmakers from the Daegu and North Gyeongsang region, includes provisions stating that the "Minimum Wage Act" Article 6 shall not apply in the Global Future Special Zone, and that, notwithstanding Article 50 of the "Labor Standards Act," working hours per week or per day in the Global Future Special Zone may be applied differently within the scope set by Presidential Decree.

An official from Daegu City said, "As far as I know, among the many economic special zones in our country, there is no zone where the minimum wage does not apply," and added, "If the minimum wage is excluded in the Global Future Special Zone, it could become the first such case."

A Daegu City official said, "In order to attract high-tech companies to the Global Future Special Zone, we included in the special bill a provision that the minimum wage of an hourly wage of 10,320 won and a monthly salary of 2,156,880 won based on an 8-hour workday will not be applied to companies moving into areas such as the redevelopment site of Daegu Airport," and added, "However, since there is a possibility of infringing on workers' rights and interests guaranteed by labor-related laws, and a risk of misunderstanding that goes against the original intent, I understand that Daegu City and North Gyeongsang Province, after discussions, plan to have this clause deleted during the National Assembly's review process of the special law."