Results of a survey on corporate views of the mega special zone regime, conducted by the Korea Enterprises Federation among 468 companies with 50 or more employees in the national advanced strategic technology sector. [Provided by KEF]
Results of a survey on corporate views of the mega special zone regime, conducted by the Korea Enterprises Federation among 468 companies with 50 or more employees in the national advanced strategic technology sector. [Provided by KEF]

Half of companies in the national advanced strategic technology sector say working-hour regulations for research and development staff should be eased within the government's planned mega special zones.

The Korea Enterprises Federation said Sunday that a survey of 468 companies with 50 or more employees in the national advanced strategic technology sector found that 66.7 percent of respondents were willing to use the mega special zones the government is pursuing. Of those, 49.4 percent said they would use the zones "if bold regulatory exemptions and support measures are guaranteed," while 17.3 percent said they had a strong intention to do so.

When asked about policy priorities for the zones to succeed — with multiple answers allowed — 42.9 percent of companies cited exemptions or moratoriums on core regulations covering labor, safety and the environment, the largest share. That was followed by government-led development of industrial infrastructure such as power and water supply (36.5 percent), talent recruitment and residential support through industry-academia-research cooperation (29.5 percent), and the establishment of an integrated control tower (27.8 percent).

On labor regulatory exemptions, 50.6 percent of respondents said the most needed measure was flexible working hours for R&D staff — specifically, exemptions from the 52-hour weekly cap, the introduction of a white-collar exemption, and an extension of the periods allowed under flexible and selective working-hour arrangements.

Other exemptions companies sought included a temporary suspension of the Serious Accidents Punishment Act within advanced industry pilot zones for robots and similar technologies (30.1 percent), permission for replacement workers during strikes and restrictions on the occupation of essential workplace facilities (21.6 percent), eased limits on the industries and duration of dispatched workers (15.0 percent), and relaxed regulations on hiring foreign workers (13.7 percent).

On support measures for the zones, 42.1 percent of companies chose the introduction of a domestic production incentive tax regime as their top preference. That was followed by direct subsidies (38.9 percent), inheritance and gift tax reductions for companies relocating to or starting up in the zones (31.0 percent), and income and housing acquisition tax cuts for workers (22.6 percent).

Asked which body should oversee the mega special zones, 35.3 percent of respondents favored a public-private consultative body involving local governments and private companies, the largest share. Central government came next at 30.8 percent, followed by a presidential commission (18.8 percent) and metropolitan local governments (14.5 percent). As for preferred locations for future investment or relocation, the Greater Seoul area ranked first at 45.7 percent, followed by the Chungcheong region (26.3 percent), the southeastern region (18.6 percent), the Honam region (13.5 percent) and the Daegu-North Gyeongsang region (10.0 percent).


keg@heraldcorp.com