Bill to go through party-government consultations Friday
White-collar exemption, flexible work hours, fixed-term employment rules included
'Menu-style deregulation' planned for feasibility reviews, environmental assessments
First Korea-US investment project to be reported to National Assembly within two weeks
Democratic Party of Korea Lawmaker Jang Cheol-min, the party's floor coordinator on the National Assembly's trade, industry and small business committee, said he plans to introduce a "mega special zone" bill this week to underpin the government's mega-project initiative. The legislation centers on sweeping deregulation across industries and is expected to include labor reform measures in three areas: a white-collar exemption, a flexible working-hours system and changes to fixed-term employment rules.
Jang made the announcement Wednesday at the Future Leaders Forum, a joint event hosted by The Herald Business and law firm Daelyuk Aju at The Plaza hotel in Jung-gu, Seoul. "It looks like we will finally introduce the mega-project-related bill this week," he said, adding that a party-government consultation was scheduled for Friday afternoon.
Jang said the bill would be introduced primarily by members of the mega special committee. "Because the legislation is complex, we are working to incorporate and reconcile as many views as possible," he said. He added that the bill would not be adopted as an official party position from the outset but would be developed into a more complete form through extensive debate.
The proposed exemption of high-income research and development workers inside mega special zones from the 52-hour weekly work cap has drawn disagreement even within the party. Jang said the bill would initially cover labor deregulation in "about three areas," while acknowledging that "there will naturally be strong pushback from labor." He said the party intended to hold intensive internal debate once the bill was out and to engage closely with other economic stakeholders.
Jang also left open the possibility that labor-related provisions could be revised during the final legislative process. "Nobody really knows what the clauses that pass the plenary session will look like in the end," he said. He expressed hope that the debate would go beyond simply deciding what to include or exclude, and that conclusions would be reached within the broader framework of how the country works and how regional communities will change.
Beyond labor, the bill includes large-scale regulatory exemptions designed to accelerate business activity. It would ease rules on preliminary feasibility reviews, environmental impact assessments, and construction and infrastructure, while also pursuing what Jang described as "menu-style deregulation" — allowing companies to select the specific regulatory relief they need based on their industry and circumstances.
"The idea is to divide this by sector — semiconductors, secondary batteries, mobility and autonomous driving — and let companies get what they are asking for in each field," Jang said. He added that the bill would restructure the regulatory sandbox so that companies could set their own timeframes and scope.
Jang said the shift in industrial policy must be accompanied by a transformation in labor-management relations. "There is genuinely strong demand for change in collective labor-management relations, and it is something the Democratic Party is grappling with," he said, adding that the party must not be reduced to simply representing business interests rather than labor.
He also raised the possibility of developing a new regional model for labor-management relations as a future goal. "It is not reflected in the current bill, but we could consider establishing a regional labor-management framework within mega special zones, rather than relying solely on individual labor relations," Jang said. He added that restructuring the collective labor-management framework to create new avenues for dialogue could make the policy shift translate far more meaningfully into an improved business environment.
Jang said the ultimate goal of the mega special zone bill was not simply to support individual companies or regions, but to change how the country conducts industrial policy and how it works. "The mega-project is a project to change the way we work," he said. "We are working hard to support SK Group, Samsung and the Gwangju project, but there is a shared understanding that what we really need to accomplish through all of this is to change the way the state operates."
He drew a line against viewing the mega-project as a support measure for specific regions such as Gwangju and Yongin. "The mega-project will truly succeed when it delivers results that go beyond building factories in Gwangju, speeding up factory construction in Yongin and helping Hyundai in Saemangeum — when it changes the entire framework at once, in terms of balanced growth that allows advanced and existing industries across the whole country to take a leap forward," he said.
Jang also said the first Korea-US investment project could take shape within the next two weeks. "Minister of Trade, Industry and Energy Kim Jung-kwan is currently in the United States, and the first project is expected to be reported to the National Assembly within two weeks," he said.
Jang touched on the dilemma posed by surging electricity demand driven by AI industry expansion, which requires balancing carbon reduction goals with industrial competitiveness. Citing the United States' move to expand gas-fired power generation to meet the electricity needs of AI data centers, he said the Democratic Party was not in a position to "throw out" its carbon reduction commitments. "We are pushing ahead with the mega-project and thinking through changes in the global order to craft new policy, all while navigating this complex web of dilemmas," he added.
Meanwhile, responding to requests from the floor to expand legal support for small business owners closing up shop and for victims of unfair trade practices, Jang said he would work to expand programs for small business owners struggling despite the semiconductor industry boom.
thanks@heraldcorp.com
