Ministry of Trade, Industry and Energy unveils 13 improvement tasks for semiconductor sector

Key R&D workforce working-hour exemptions under review; legislation for super-regional special zone to be expedited

Minister of Trade, Industry and Energy Kim Jung-kwan. [Yonhap]
Minister of Trade, Industry and Energy Kim Jung-kwan. [Yonhap]

The government plans to introduce a fast-track system that simultaneously pursues permitting, land compensation and design for industrial complexes in order to accelerate investment in semiconductor megaprojects.

The government will also push forward 13 improvement tasks for the swift execution of semiconductor megaproject investment, including a review of working-hour exemptions for key semiconductor research and development personnel.

South Korea's Ministry of Trade, Industry and Energy on Friday announced, jointly with related ministries, a plan titled "Regulatory Rationalization Measures for the Swift Execution of Semiconductor Megaproject Investment" at the second plenary session of the Regulatory Rationalization Committee, held at Cheong Wa Dae's banquet hall.

The government intends to reform the regulatory regime so that semiconductor-related investment, research and support can be carried out quickly and efficiently.

To shorten the time required before investment can begin, procedures related to site selection and infrastructure — which had previously been handled sequentially — will be processed in parallel or as a single batch.

Under the current system, planning for a semiconductor industrial complex, obtaining various permits, land compensation, and design and construction all proceed in order. Going forward, the fast track will allow permitting, compensation and design to advance simultaneously, with the aim of dramatically cutting the time from complex development to fab operation.

The government also plans to incorporate into the super-regional special zone legislation a provision allowing additional permits — beyond those already covered under the Semiconductor Special Act — to be processed in bulk when a semiconductor cluster is designated as a super-regional special zone.

Measures will also be put in place to ensure a seamless continuum from fab construction through production, operation and exports.

Industrial complexes housing semiconductors and other advanced industries will be designated as comprehensive bonded zones.

Currently, each semiconductor fab must obtain a bonded factory patent and renew it every five to 10 years. The government plans to ease that burden and facilitate the import, processing and movement of foreign equipment and raw materials within industrial complexes.

Unnecessary administrative burdens will also be reduced, including the elimination of duplicative procedures that previously required separate approvals and notifications from both the Ministry of Employment and Labor and the Ministry of Climate, Environment and Energy for work involving hazardous chemicals.

Separate safety standard exemptions reflecting the characteristics of production sites will be established for high-pressure gases used in semiconductor manufacturing.

In the interest of speed, the government also plans to review working-hour exemptions for key semiconductor R&D personnel within super-regional special zones. However, such exemptions will be premised on appropriate compensation and health protections, and the government will consult with labor and business groups before proceeding.

The government will expand opportunities for domestic semiconductor materials, components and equipment companies to conduct demonstration projects, and will streamline inspection and testing procedures for R&D prototypes produced within semiconductor bonded factories.

A pan-government support system will also be established to manage investment schedules systematically. A special committee to strengthen semiconductor industry competitiveness, chaired by the president, will serve as the pan-government coordination channel, while the ministry's Semiconductor Innovation Growth Support Team will help companies resolve difficulties and follow through on investment commitments.

The government will also push for the early enactment of the super-regional special zone legislation needed to underpin the semiconductor megaprojects.

"The semiconductor race is a race against time," Trade, Industry and Energy Minister Kim Jung-kwan said. "While safeguarding safety and workers' rights, we will boldly reform procedures that do not fit the realities of the field, and work with related ministries to ensure chipmakers do not miss the critical window for investment and R&D — so that the megaprojects are carried out without a hitch."


oskymoon@heraldcorp.com