South Korea labor ministry targets wage misuse and proposes semiconductor zone dialogue

South Korea’s Ministry of Employment and Labor has launched a two-month intensive inspection targeting the manufacturing, IT, and professional service sectors. The crackdown focuses on the misuse of the comprehensive wage system and fixed overtime (OT) arrangements, where employers fail to pay legal allowances for overtime, night, or holiday work. This follows a significant rise in anonymous reports, which increased nearly threefold compared to the previous year.

Simultaneously, Labor Minister Kim Young-hoon has proposed a “one-point social dialogue” involving labor, management, and the government to address controversial labor exceptions for the proposed semiconductor mega zone. The discussion aims to resolve tensions regarding potential exemptions from the 52-hour work week, such as “white-collar exemptions” for researchers and managers. While business groups seek these measures to boost productivity, labor unions have expressed caution, emphasizing the need to protect workers' rights and health.