Six major business groups issue joint statement Tuesday

Groups urge working-hour flexibility for R&D staff

Call for extended use of fixed-term workers

Promise fair compensation and protection of workers' health rights

Minister of Trade, Industry and Energy Kim Jung-kwan visits a former military airfield in Seo-gu, Gwangju, South Jeolla Province — a candidate site for a southwestern semiconductor industrial complex — on Oct. 12 to review progress on the project with officials from relevant agencies, including the Korea Land and Housing Corporation and Korea Electric Power Corporation, covering plans for the temporary relocation of air force units, industrial-zone designation, site development, and power and water supply. [Ministry of Trade, Industry and Energy]
Minister of Trade, Industry and Energy Kim Jung-kwan visits a former military airfield in Seo-gu, Gwangju, South Jeolla Province — a candidate site for a southwestern semiconductor industrial complex — on Oct. 12 to review progress on the project with officials from relevant agencies, including the Korea Land and Housing Corporation and Korea Electric Power Corporation, covering plans for the temporary relocation of air force units, industrial-zone designation, site development, and power and water supply. [Ministry of Trade, Industry and Energy]

South Korea's major business groups welcomed the ruling party's introduction of a bill to establish large-scale special economic zones but expressed regret that a separate version of the legislation — one stripped of labor exemptions — is being pursued in parallel. The groups argued that improving labor regulations, including flexible working hours for research and development personnel, must accompany the bill if it is to meaningfully boost regional investment, employment and advanced-industry competitiveness.

The Korea Enterprises Federation, the Korea Chamber of Commerce and Industry, the Korea Economic Association, Korea International Trade Association (KITA), the Korea Federation of SMEs and the Korea Mid-sized Company Federation — six major business groups — issued a joint statement Tuesday to that effect.

The six groups welcomed the bill's introduction, noting that it could contribute to balanced regional growth and the development of national strategic industries. They added that businesses would work to expand regional investment and job creation in line with the legislation's intent.

However, they said the pursuit of a separate bill excluding labor exemptions was "deeply regrettable, as it could make it difficult to achieve the legislative goals of the mega-zone law."

The labor exemptions the business community is seeking include special provisions on working hours for R&D and related roles, an expansion of the settlement period under the selective working-hours system, and an extension of the permitted duration for employing fixed-term workers.

The six groups called these measures "essential elements for enhancing competitiveness in an increasingly fierce global industrial competition." They warned that without improvements to labor regulations, the bill's goals of fostering regional industries and expanding corporate investment would face inherent limits.

Earlier Tuesday, the Democratic Party of Korea introduced a version of the mega-zone bill that includes labor exemptions, while also announcing plans to advance a separate bill without those provisions. The party said it intends to have both bills reviewed together in the National Assembly before settling on a final version, taking into account the gap between labor and management over the easing of working-hour regulations.

The bill introduced by Democratic Party lawmaker Park Sang-hyeok includes special provisions on working hours and the use of fixed-term workers within the designated zones.

Labor groups have raised concerns that easing working-hour regulations could normalize excessively long hours and infringe on workers' health rights. They have also argued that extending the permitted duration for fixed-term employment could worsen job insecurity.

In response, the business community said that because the labor exemptions target core personnel who are the source of corporate competitiveness, it would also put in place protections for workers.

The six groups said they would "establish a fair compensation system, including wage structure reform, through consultations between workers and employers, and seek measures to guarantee workers' health rights." They said the aim was to ensure that flexible working hours would not lead to the normalization of long working hours or a decline in wage levels, with labor and management working together to develop safeguards.

The government is continuing tripartite social dialogue among labor, management and government over whether to introduce the labor exemptions. The Ministry of Employment and Labor said Tuesday that following the bill's introduction, it would work to develop a reasonable approach through sufficient discussion and deliberation, and would consult to ensure the outcome is reflected in the National Assembly's review process.

The six groups called for the swift passage of the mega-zone bill with the labor exemptions included, expressing hope that "this law can serve as a cornerstone for building forward-looking labor-management relations and related systems in the future."


kwater@heraldcorp.com