President Lee Jae-myung speaks during a policy briefing by the Ministry of Trade, Industry and Energy, the Ministry of Climate, the Nuclear Safety and Security Commission and others at the Yeongbingwan guesthouse of the former presidential compound in Cheong Wa Dae on the 4th. Cheong Wa Dae Press Photographers Group
President Lee Jae-myung on the 4th called for strong support measures, saying, “We must actively remove investment obstacles so that companies’ will to invest is not undermined by various regulations, infrastructure, or manpower shortages.”
At a work report from the Ministry of Trade, Industry and Energy and the Ministry of Climate, Energy and Environment, President Lee emphasized a speed campaign for three mega projects, stating, “The world is now facing a period of great transformation in which the entire framework of industry is being changed around artificial intelligence (AI).” It is highly significant that President Lee placed emphasis on promoting corporate investment and presented measures such as regulatory reform, infrastructure expansion, manpower increases, and building mineral supply chains.
The implementation plans presented by the ministries also stand out. The Ministry of Climate, Energy and Environment decided to divide the entire nation into four grades and apply different industrial electricity rates, and to introduce a dedicated rate plan for AI data centers. It will strengthen water supply management by integrating and operating water resource facilities, and is reviewing the construction of a combined-cycle power plant at a semiconductor cluster in the Honam region. The Ministry of Trade, Industry and Energy will establish an Industrial Resources Security Fund to secure key minerals, expand oil and mineral reserves, and diversify crude oil imports. The government and large corporations will create a 10 trillion won industrial growth fund to support materials, parts, and equipment companies as well. These are matters that companies have persistently proposed to the government.
However, to realize the mega projects and become an advanced industrial powerhouse, removing labor regulations is more urgent than anything else. The two umbrella labor unions are being obstinate about measures the government is reviewing, such as applying exemptions to the 52-hour workweek within special zones, expanding the period for using fixed-term workers, and preparing guidelines for a performance bonus of N% of profits. They are throwing up obstacles, claiming that the expansion of the semiconductor plant in the Honam region and the reassignment of manpower are subjects for negotiation. Although President Lee dismissed this as “an absurd claim,” the unions remain immovable.
Advanced industries such as AI and semiconductors have long become a contest between nations, going beyond competition among individual companies. This is why major competing countries are introducing flexible employment systems, following astronomical subsidy support, regulatory reform, and the building of power and water infrastructure. To expect the success of mega projects while leaving union-tilted labor and employment policies untouched is like seeking scorched-rice water at a well. Revising the so-called Yellow Envelope Act (the amended Trade Union Act), which foments conflict between prime contractors and subcontractors over business-operator status and blocks the reassignment of manpower, is the first step toward becoming an “irreplaceable” advanced industrial powerhouse.