President Lee Jae-myung on the 29th was briefed that the temporary relocation of the Gwangju military airfield — the site chosen for a semiconductor cluster in the Honam region — would not be completed until the middle of 2028, and he instructed officials to "review the timetable again so it can be moved up as much as possible." At the third public-private review meeting on mega-projects, Lee called for speed, saying officials should "consider revising laws, rules and guidelines if that is what it takes to shorten the schedule." At an earlier meeting, the government pledged to enact a special law on mega-zones this year, easing regulations and expanding infrastructure such as power and water supply. It is a welcome sign that the president is personally overseeing and backing ultra-large projects in semiconductors, physical artificial intelligence and AI data centers.
The problem is that legislation for the special law on mega-zones, which is meant to underpin investment on the scale of 1,600 trillion won ($1.2 trillion), is being delayed. The government and the ruling party initially aimed to introduce the bill in September and pass it by the end of the year. But disagreement over labor exemptions, including exceptions to the 52-hour workweek, has become a stumbling block. Business groups want more flexible working hours for research and development staff and others, while labor groups object that this amounts to long working hours and an infringement of labor rights. Tripartite social dialogue among labor, management and the government has begun, but there is no certainty as to when it will produce a conclusion.
The special law on mega-zones is not a law about labor exemptions alone. It is a package of investment support that spans shorter approval periods for industrial complexes and environmental permits, power and water supply, expanded transport networks, fiscal, financial and tax support, and settlement infrastructure such as housing and education. If talks on labor exemptions drag on and the bill keeps slipping, other investment support measures cannot help but be affected. For semiconductor plants and AI data centers to run properly, a stable power grid and ample water facilities are essential. It would be unacceptable for plants to be built but left idle because infrastructure work falls behind schedule.
Major economies such as the United States and Japan are mounting all-out national efforts to nurture advanced industries. Lee himself last month said the Honam semiconductor cluster called for "not just a speed campaign but a blitz." The government and the National Assembly must stop using social dialogue as a reason to put off the special law on mega-zones. Even if the government has promised infrastructure support, uncertainty over when it will be delivered will disrupt companies' ability to invest at the right time. The government needs to take responsibility and lead the social dialogue, and the National Assembly should consider legislating the support provisions, including those on infrastructure, first.
