Labor deregulation measures in focus, including flexible work hours and fixed-term employment exemptions

Bill to also include 'menu-style deregulation' covering preliminary feasibility reviews and environmental assessments

Lawmakers on party's mega special committee expected to lead bill introduction

Jang Cheol-min
Jang Cheol-min

The Democratic Party of Korea and the government will hold their first official consultations Friday on a bill to establish "mega special zones," it has been confirmed. The legislation is expected to include labor deregulation measures — most notably a "white-collar exemption" that would exclude high-income research and development workers in the zones from the 52-hour workweek cap. The two sides plan to introduce the bill shortly after completing their consultations.

The party and government will meet Friday afternoon to discuss the mega special zone bill, which is designed to support the broader mega project initiative, according to political sources. It will be the first formal consultation between the two sides ahead of the bill's introduction.

The legislation is expected to include three main labor regulatory exemptions: the white-collar exemption, a flexible working-hours scheme, and a special provision related to the Fixed-Term and Part-Time Employment Act. The measures reflect an intent to ease working-hour restrictions for high-income R&D workers and others employed within the mega special zones.

Beyond labor, large-scale regulatory exemptions are also under review to accelerate corporate investment and project timelines. These would ease requirements for preliminary feasibility studies, environmental impact assessments, and construction and infrastructure regulations. The bill would also introduce a so-called "menu-style deregulation" approach, allowing companies to select the specific exemptions they need by industry — covering semiconductors, secondary batteries, mobility and autonomous driving, among others.

Rep. Jang Cheol-min, the Democratic Party's floor coordinator on the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee and a leading figure in the party's mega project discussions, said the party-government consultation on the bill was scheduled for Friday afternoon. He made the remarks at the Future Leaders Forum, co-hosted by The Herald Business and law firm Daelyuk Aju in Jung-gu, Seoul.

"We are thinking of having the bill introduced mainly by members of the mega special committee," Jang said, adding that the team was working to incorporate and reconcile as many views as possible given the bill's complexity. He said the legislation would not be adopted as an official party position from the outset, but would instead be developed into a more refined form through extensive debate.

The central sticking point is the labor regulatory exemption. Disagreements have persisted within the party over whether to exempt high-income R&D workers in the mega special zones from the 52-hour workweek. "There will naturally be strong pushback from labor," Jang acknowledged, but said the party intended to hold intensive internal discussions once the bill is out and engage closely with other economic stakeholders.

"No one really knows what the final text passed by the plenary session will look like," Jang said. He expressed hope that the debate would go beyond simply deciding what to include or exclude, and instead produce conclusions grounded in how the country works and the broader framework for transforming regional communities.

He also stressed that the mega project would only truly succeed if it delivered balanced growth — lifting both advanced and traditional industries across the regions as a whole, rather than simply building factories in Gwangju and Yongin or supporting Hyundai at Saemangeum.


thanks@heraldcorp.com