Bill would add semiconductor manufacturing, shipping and infrastructure operations to essential public service list

"No. 1 export industry … minimum safeguards needed"

People Power Party lawmaker Cho Eun-hee [provided by lawmaker's office]
People Power Party lawmaker Cho Eun-hee [provided by lawmaker's office]

People Power Party lawmaker Cho Eun-hee, who represents Seoul's Seocho-gap district, announced Wednesday that she had introduced a bill to classify the semiconductor industry as an "essential public service" under the Trade Union and Labor Relations Adjustment Act.

The amendment aims to guarantee minimum operation of critical semiconductor equipment during labor disputes, preventing equipment damage and supply chain disruptions.

Under current law, industries such as water supply, electricity, gas, oil refining and oil distribution are classified as public services and essential public services. During labor disputes, management and labor must conclude a written "essential maintenance work agreement" specifying the minimum level of operations, the duties involved and the number of workers needed to maintain them.

Despite the semiconductor industry's status as a core strategic asset of the South Korean economy, it falls outside the scope of these safeguards, Cho said. Semiconductor exports reached $175.3 billion last year, making it the country's top export item by a single category — accounting for roughly 24.7 percent of total exports. The share is projected to exceed 30 percent this year, driven by growing demand for AI and data centers.

The unique nature of semiconductor production processes adds to the urgency. If a production line running around the clock were to halt even briefly, the consequences would include scrapped in-process wafers, damage to expensive equipment and massive inventory losses — as well as global supply chain disruptions with serious implications for economic security. Production losses alone are estimated to run into the hundreds of billions of won per day, and restoring a halted line to normal operation requires considerable time and cost.

The stakes were illustrated recently when, after the National Samsung Electronics Union secured the right to strike, Samsung Electronics sought a court injunction. The dispute resulted in court-determined standards for maintaining safety and security operations at normal levels, the number of workers required and financial penalties for violations — a legal battle that a pre-agreed essential maintenance work agreement could have avoided.

The bill would add semiconductor manufacturing, safety, shipping, and the operation of infrastructure including power, water and air-conditioning systems to the list of essential public services, bringing them under the essential maintenance work regime.

The goal is to require management and labor to conclude an essential maintenance work agreement in advance, ensuring a minimum level of operations is maintained even during labor disputes.

"The semiconductor industry is South Korea's top export item and a strategic industry directly tied to economic security," Cho said. "We must have at least a minimum institutional framework in place to prevent a complete shutdown of national critical infrastructure in the face of labor-management conflicts that have already become a reality."


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