[Edaily Reporter SOYEON KIM ] “Regulations on the 52-hour workweek should be relaxed for businesses that create new concepts or for semiconductor research and development (R&D).”
Kwon Oh-hyun, former chairman of SamsungElectronics, made these remarks on the 13th during a special roundtable discussion at the Digital Insight Forum hosted by the KoreaInformation&Communication Technology Promotion Association (KAIT). Addressing the intensifying debate over the 52-hour workweek for workers in the recently established Honam Semiconductor Mega Special Zone, he stated, “If other countries had the same law, it wouldn’t be a problem, but that’s not the case.” Observers note that these candid remarks carry significant weight coming from a veteran of the semiconductor industry with over 40 years of experience.
◇“The 52-Hour Workweek Rule Must Be Relaxed for Semiconductor R&D”
In fact, while South Korea enforces uniform working hour regulations, major developed nations such as the United States and Japan place the emphasis of their policies on “autonomy.” For example, the United States operates the “White-Collar Exemption” system, which relaxes working hour regulations for high-income professionals. The semiconductor industry has long argued that relaxing the 52-hour workweek regulation is essential to compete globally. Former Chairman Kwon stated, “We are competing with the world, and we must survive in this environment.”
He also voiced criticism regarding the labor market rigidity unique to Korean companies. “The biggest problem in our country is that flexibility in layoffs is ‘zero,’” he said. “Every organization has underperformers, but there is no way to let them go. Under these circumstances, organizational productivity cannot improve.”
Former Chairman Kwon pointed out that the competitiveness of domestic companies cannot be guaranteed by semiconductor growth alone. In the age of AI, he argued, companies must move beyond the traditional approach of simply following advanced firms and instead create new markets and business models on their own. “Since liberation, we’ve risen from being one of the poorest nations to the threshold of a developed nation through a ‘first-follower’ strategy—that is, by copying others to succeed,” he said. “Why is Taiwan’s TSMC so respected? It’s because they were the first to create a new business model: the foundry (semiconductor contract manufacturing).”
In that vein, he also pointed out that South Korea’s growth model must undergo a fundamental transformation. “What kind of transformation have companies undergone over the past decade? What about the government and educational institutions?” former Chairman Kwon asked rhetorically, adding pointedly, “We are under the delusion that the ‘fast follower’ success model will remain valid.”
◇“Couldn’t Have Predicted the Current Memory Boom”
It is also noteworthy that former Chairman Kwon referred to semiconductors as a growth industry for the next decade. He said, “Semiconductors are a growth industry in terms of volume itself, as new sources of demand—such as physical AI, humanoids, and autonomous vehicles—continue to emerge,” adding, “The memory semiconductor market has experienced a boom on a scale even I did not anticipate. I don’t think the rest of the world anticipated it either.”
He explained, “In the past, it was said that the semiconductor industry had a cycle of every three to four years, but at that time, 80–90% of memory demand depended on PCs.” He continued, “Now, new sources of demand are constantly emerging, and since we need to process vast amounts of data, demand for semiconductors will continue.”
In fact, the memory market is expanding rapidly. According to market research firm Counterpoint Research, the global memory market is projected to reach 1,500 trillion won this year—more than four times the previous year’s 360 trillion won. This is due to a sharp increase in server demand driven by expanding investment in AI infrastructure. The share of server products in total memory sales is also expected to rise from 37% last year to 56% this year.
This trend aligns with the recent rush by memory companies to expand their production facilities. SamsungElectronics and SK hynix are accelerating the development of the Yongin semiconductor cluster and are also pushing forward with the construction of semiconductor production facilities in the Honam region.
He also addressed the so-called “N% performance-based bonus,” which has recently emerged as a hot topic across society. Regarding the conflict surrounding SamsungElectronics’ N% performance-based bonus tied to operating profit, he advised, “We need to create a system that envisions the big picture five or ten years down the road and evaluates employees accordingly.” He added, “This is not just a problem for SamsungElectronics, but for all companies.”
Kwon Oh-hyun, former chairman of SamsungElectronics, made these remarks on the 13th during a special roundtable discussion at the Digital Insight Forum hosted by the KoreaInformation&Communication Technology Promotion Association (KAIT). Addressing the intensifying debate over the 52-hour workweek for workers in the recently established Honam Semiconductor Mega Special Zone, he stated, “If other countries had the same law, it wouldn’t be a problem, but that’s not the case.” Observers note that these candid remarks carry significant weight coming from a veteran of the semiconductor industry with over 40 years of experience.
◇“The 52-Hour Workweek Rule Must Be Relaxed for Semiconductor R&D”
In fact, while South Korea enforces uniform working hour regulations, major developed nations such as the United States and Japan place the emphasis of their policies on “autonomy.” For example, the United States operates the “White-Collar Exemption” system, which relaxes working hour regulations for high-income professionals. The semiconductor industry has long argued that relaxing the 52-hour workweek regulation is essential to compete globally. Former Chairman Kwon stated, “We are competing with the world, and we must survive in this environment.”
He also voiced criticism regarding the labor market rigidity unique to Korean companies. “The biggest problem in our country is that flexibility in layoffs is ‘zero,’” he said. “Every organization has underperformers, but there is no way to let them go. Under these circumstances, organizational productivity cannot improve.”
Former Chairman Kwon pointed out that the competitiveness of domestic companies cannot be guaranteed by semiconductor growth alone. In the age of AI, he argued, companies must move beyond the traditional approach of simply following advanced firms and instead create new markets and business models on their own. “Since liberation, we’ve risen from being one of the poorest nations to the threshold of a developed nation through a ‘first-follower’ strategy—that is, by copying others to succeed,” he said. “Why is Taiwan’s TSMC so respected? It’s because they were the first to create a new business model: the foundry (semiconductor contract manufacturing).”
In that vein, he also pointed out that South Korea’s growth model must undergo a fundamental transformation. “What kind of transformation have companies undergone over the past decade? What about the government and educational institutions?” former Chairman Kwon asked rhetorically, adding pointedly, “We are under the delusion that the ‘fast follower’ success model will remain valid.”
◇“Couldn’t Have Predicted the Current Memory Boom”
It is also noteworthy that former Chairman Kwon referred to semiconductors as a growth industry for the next decade. He said, “Semiconductors are a growth industry in terms of volume itself, as new sources of demand—such as physical AI, humanoids, and autonomous vehicles—continue to emerge,” adding, “The memory semiconductor market has experienced a boom on a scale even I did not anticipate. I don’t think the rest of the world anticipated it either.”
He explained, “In the past, it was said that the semiconductor industry had a cycle of every three to four years, but at that time, 80–90% of memory demand depended on PCs.” He continued, “Now, new sources of demand are constantly emerging, and since we need to process vast amounts of data, demand for semiconductors will continue.”
In fact, the memory market is expanding rapidly. According to market research firm Counterpoint Research, the global memory market is projected to reach 1,500 trillion won this year—more than four times the previous year’s 360 trillion won. This is due to a sharp increase in server demand driven by expanding investment in AI infrastructure. The share of server products in total memory sales is also expected to rise from 37% last year to 56% this year.
This trend aligns with the recent rush by memory companies to expand their production facilities. SamsungElectronics and SK hynix are accelerating the development of the Yongin semiconductor cluster and are also pushing forward with the construction of semiconductor production facilities in the Honam region.
He also addressed the so-called “N% performance-based bonus,” which has recently emerged as a hot topic across society. Regarding the conflict surrounding SamsungElectronics’ N% performance-based bonus tied to operating profit, he advised, “We need to create a system that envisions the big picture five or ten years down the road and evaluates employees accordingly.” He added, “This is not just a problem for SamsungElectronics, but for all companies.”
