Gov't formally proposes 'one-point' social dialogue on mega special zone labor exemptions

The government has formally proposed a "one-point social dialogue" with labor and business groups to discuss labor exemptions under the mega special zone bill, including exceptions to the 52-hour workweek cap. The proposal aims to let the two sides work out their differences directly before the legislation moves forward.

Employment and Labor Minister Kim Young-hoon held a briefing at Government Complex Seoul on Tuesday to announce the proposal. "The government proposes a one-point social dialogue on the labor exemptions under the mega special zone special act," he said. "We ask all parties to the social dialogue to join the conversation for the sake of the next generation's jobs and the future of our society."

The mega special zone bill is designed to attract advanced industries — including semiconductors and AI — to regions outside the Greater Seoul area by easing regulations and concentrating fiscal, financial and tax support in designated zones. The government is pursuing a plan to establish strategic industry hubs across five major clusters and three special zones.

The central point of contention is the labor exemptions that would apply to companies operating within the zones. The government has been reviewing a so-called white-collar exemption that would partially exclude high-income managers and research and development workers from the 52-hour weekly limit. A separate proposal to modify overtime, night-shift and holiday pay rules with worker consent has also been discussed.

Also under consideration are extending the maximum employment period for fixed-term contract workers from two to four years, expanding the range of jobs eligible for dispatch workers, and lengthening the settlement period for flexible working-hour arrangements to up to six months.

"The labor exemptions being discussed represent a path our society has not yet taken," Kim said. "There will inevitably be differences of opinion between companies seeking the exemptions and workers raising concerns." He stressed that labor and management, as the directly interested parties, must participate and engage in thorough dialogue.

The social dialogue would cover not only the mega special zone labor exemptions but also issues proposed by labor and management related to protecting workers' health and improving corporate productivity. However, the government did not specify who would participate, how the consultative body would operate, or the precise scope and timeline of the discussions.

The proposal follows a Sept. 3 meeting between President Lee Jae-myung and the heads of the two major union federations, at which Lee asked them to seek solutions through social dialogue involving both federations on labor issues including the mega special zone. The federations had demanded social dialogue and a presidential meeting in August after opposing the proposed 52-hour exemption and the easing of rules on fixed-term and dispatch workers. Tuesday's announcement is the government's formal response to those demands.

The dialogue is expected to include not only the Federation of Korean Trade Unions, a member of the presidential Economic, Social and Labor Council, but also the Korean Confederation of Trade Unions, which has been boycotting the council. On the business side, the Korea Enterprises Federation and the Korea Federation of Enterprises are among the groups being mentioned as participants.

However, given that labor groups have been demanding the full withdrawal of the labor exemptions, the path to actual dialogue — let alone agreement — is expected to be rocky.