Labor Minister Kim Young-hoon speaks during a luncheon meeting with reporters in Sejong, Wednesday. Courtesy of Ministry of Employment and Labor
Labor Minister Kim Young-hoon said that a much-discussed labor deregulation package for Korea's planned mega chip cluster in the southwest is “still under review,” as business groups and unions closely track the government's next move.
Speaking to reporters on Wednesday, Kim said controversial policy ideas such as easing the 52-hour workweek cap and extending fixed-term contracts in the “mega special zone” have yet to be finalized as President Lee Jae Myung presses ahead with plans to fast-track the large-scale chip investment.
“There is nothing finalized yet within the government regarding the mega chip project as we are still in the process of maturing the discussions,” Kim said. “I expect there will be further coordination among relevant ministries. In particular, the two major umbrella unions have proposed a meeting with the president and broader social dialogue on this issue, and as the minister in charge, I will make sure to communicate fully with the labor side so that this can move forward.”
The minister’s remarks come amid reports that the government is weighing aggressive labor deregulation for the zone, including lifting the 52-hour weekly cap for top-earning managers and research and development staff under a so-called “white-collar exemption” and allowing fixed-term contracts in the cluster to run beyond the current two-year limit, as well as loosening restrictions on the use of dispatched workers.
