Samsung Secures Government Approval to Extend Work Hours to 64 per Week for R&D and Semiconductor Divisions to Enhance Competitiveness

In South Korea, the statutory workweek is set at 52 hours. However, for technology leader Samsung, this limit is now extended to 64 hours following governmental approval. This strategic shift comes as the company strives to keep up with competitors in the semiconductor industry, which has seen rapid advancements.

Government Approval: A New Chapter in Labor Law

The Ministry of Employment and Labor’s Gyeonggi branch granted Samsung’s request on April 9, allowing the company to extend working hours for its Research and Development (R&D) personnel focusing on chip manufacturing. This extension raises questions regarding whether employees will receive increased compensation for their extended hours. Notably, the South Korean government recently revised labor laws on March 14, which now permit companies to request up to six months of work-hour extensions.

Under the new regulations, Samsung can operate its R&D staff under a 64-hour workweek for an initial six-month period. After this duration, the company must submit another application for further approval. Previously, extensions were limited to three months. Additionally, other semiconductor organizations are reportedly preparing similar requests, indicating a competitive shift in the industry as companies attempt to enhance productivity.

Recent Technological Advancements

Samsung’s commitment to innovation is evident as the company recently reported achieving 2nm yields of 40%, an improvement from the 30% yields observed during a trial production of the Exynos 2600. This advancement positions Samsung to more effectively compete with prominent rivals like TSMC. Yet, concerns linger regarding the protection of employees from burnout and whether equitable compensation is provided for the increased workload.

As South Korea continues to navigate the complexities of labor management and technological competition, the balance between workplace demands and employee well-being remains crucial. The developments seen in Samsung’s operational strategy reflect broader trends within the semiconductor domain, underscoring the need for sustainable practices alongside competitive growth.

News Source: The Chosun Daily

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