Business community welcomes deregulation push, urges swift passage of mega-zone bill

South Korea's business community has welcomed the government's deregulation plan for mega-zone industrial complexes, saying easing regulations on semiconductors, robots and AI is essential to strengthening the country's competitiveness in advanced industries, and urging the National Assembly to pass the relevant legislation without delay.

The Korea Enterprises Federation said Friday in a statement that "the current moment is urgent for revitalizing regional economies and securing future growth engines," expressing strong support for the government's plan to build a mega-zone industrial ecosystem centered on robots, semiconductors and AI data centers.

The federation identified "speed" and "flexibility" as the two factors that will determine whether the mega-zone initiative succeeds, and put forward working-hour exemptions for high-income R&D personnel, a fast-track permitting system for semiconductor projects, the creation of conditions for robot demonstration and commercialization, and the easing of key regulations on autonomous driving and biotech as the top priorities.

It described the deregulation measures as "essential steps to securing global competitiveness" and said it strongly welcomed the plan.

The government discussed regulatory improvements to support the mega-zone industrial ecosystem at the second plenary session of the Regulatory Rationalization Committee, chaired by President Lee Jae-myung on Friday.

The core aim is to reduce the permitting procedures and regulations that hinder large-scale corporate investment in regional areas. To that end, the government is pushing to enact a mega-zone special act containing more than 320 regulatory exemptions, under which companies and local governments would be able to select and apply the specific exemptions they need.

By sector, a fast-track system running permitting, compensation and design procedures simultaneously will be applied to the development of advanced national semiconductor industrial complexes. The goal is to cut the time needed to build such complexes from the current 10-plus years to within five years.

AI data centers will be brought under a unified permitting system, while the robot sector will see clearer safety standards for mobile industrial robots to create the conditions needed for demonstration and commercialization. The government also plans to revise regulations governing driverless autonomous vehicle operations and the use of new technologies in the biotech sector.

The working-hour exemption for R&D personnel that the federation highlighted is expected to be a key flashpoint in the legislative process. A bill introduced by Democratic Party of Korea lawmaker Park Sang-hyeok includes a provision allowing researchers and developers in the top 3 percent of earned income to be exempted from the 52-hour weekly work limit through a written agreement with their employer.

Labor groups, however, oppose the measure, arguing it could lead to an expansion of long working hours. The government is currently discussing the issue through a social dialogue process involving labor, management and related ministries.

The business community had already signaled its support Tuesday, when the Korea Enterprises Federation and five other major economic organizations issued a joint statement welcoming the introduction of the mega-zone bill, which includes the working-hour exemption. The groups said greater flexibility in working arrangements for key R&D personnel was necessary, and pledged to develop appropriate compensation structures and measures to protect workers' health alongside any changes.

The federation said swift legislation and institutional backing are needed for the government's deregulation plan to translate into actual corporate investment and regional industrial development. It called on the National Assembly and the government to "actively engage and cooperate so that broad regulatory exemptions and a comprehensive support system can be swiftly enacted into law during the National Assembly's deliberations on the mega-zone special act and related legislation."