[fn Editorial] As the Industrial Clock Ticks Urgently, Will Economic Bills Continue to Be Delayed?

While there are projections for a slight increase in next year’s growth rate, the fundamental strength of our economy remains largely unchanged. Domestic demand recovery is weaker than expected, and the foreign exchange market continues to be unstable. On the 12th, the US Dollar–South Korean Won exchange rate rose to 1,470 won in the Seoul foreign exchange market, marking the highest level in seven months since April 9. The won weakened due to expectations of a stronger dollar following the end of the Federal government of the United States shutdown.
On the 11th, Sohn Kyung Shik, Chairman of the Korea Enterprises Federation (KEF), met with Kim Ji-hyung, the newly appointed chair of the Economic, Social and Labor Council (ESLC), and expressed concerns that the Yellow Envelope Act, which only reflects the union’s perspective, could trigger chaos in the workplace. The ruling party’s unilateral legislative push is not limited to the union law. The same applies to the repeatedly amended Commercial Act, and the Retirement Age Extension Bill is also being pushed through without due consideration. Meanwhile, bills that require urgent attention are being neglected and left to languish.
The global market is moving at a breathless pace every day. In this era of speed competition, even a moment’s lapse can cause one to lose pace and quickly fall behind. This is no time to be complacent, satisfied with a growth rate barely achieved through public coupons and fiscal expansion.
It is imperative to promptly address the economic and livelihood bills currently stalled in the National Assembly of the Republic of Korea and to follow up on necessary amendments without further delay. These laws are essential for enhancing national competitiveness, yet many remain in limbo due to political disputes. As major companies relocate factories overseas, the foundation of domestic manufacturing is being undermined. The industry now faces existential threats from China’s low-cost offensive and the wave of overseas protectionism.
The steel industry is a prime example. Once a driving force behind our rapid growth, it now faces a critical juncture, with its very survival at stake. Following the 50% tariff imposed by the United States, high tariffs from the European Union (EU) are also looming. With both major export markets shrinking and domestic demand struggling, how much longer will support bills be left dormant? In early August, lawmakers from both parties, recognizing the seriousness of the situation, jointly proposed the K-Steel Act. This bill calls for the establishment of a five-year master plan for the steel industry and provides various subsidies and tax benefits. With bipartisan agreement, there is no reason for further delay.
Swift passage of the CHIPS and Science Act (CHIPS Act) and legislation related to artificial intelligence (AI) is also urgent. The CHIPS Act has been stalled due to disagreements between the parties over exemptions to the 52-hour workweek for research and development positions. At the very least, provisions with no dispute—such as rapid infrastructure development, the creation of subsidy funds, and expanded R&D tax credits—should be passed first, with discussions on working hours to follow.
The exemption to the 52-hour workweek must eventually be addressed. Imposing strict working hour regulations in this era of speed competition is a shortsighted approach, out of touch with the realities of the high-tech industry. Our competitors, such as Taiwan Semiconductor Manufacturing Company Limited (TSMC) and Nvidia Corporation in the United States, do not impose such restrictions on development positions.
No fewer than 27 AI-related bills are currently neglected. The Special Act on the Promotion of the AI Industry, which would exempt or ease regulations in areas where rules are ambiguous, and the Special Act on Fostering AI Talent have been submitted to the National Assembly of the Republic of Korea, but there has been no progress. Without legislative support from the political sphere, achieving a top-three global position in AI will remain out of reach—mere rhetoric rather than reality. The business community’s calls for amendments to the Yellow Envelope Act and the Commercial Act must not be ignored. Expecting economic growth while restraining companies is fundamentally contradictory.