Yellow Envelope Act becomes a constraint on KRW 800 trillion (approximately ¥93 trillion) in semiconductor investment: “Will even workforce deployment be subject to strikes?”

The KRW 800 trillion semiconductor cluster project under way in Korea’s Honam region is facing uncertainty over provisions in the amended Trade Union Act governing the scope of disputes. Business groups are concerned that decisions on new investment could become subject to the right to strike, while the government plans to develop interpretive guidelines.

Under the Honam region project, Samsung Electronics and SK hynix plan to build four fabs on the former site of a military airport in Gwangju, with construction scheduled to begin next July and completion targeted for 2029. However, uncertainty has emerged after the Samsung Electronics branch of a supra-company union disclosed plans to treat the Honam region project as an agenda item in collective bargaining for 2027.

The semiconductor industry says that deploying skilled personnel and ensuring stable plant operations are essential to improving initial yields, and is concerned that labor disputes could delay investment and the start of production. Business and legal circles emphasize that investment decisions should be excluded from the scope of disputes, while the government is seeking to draw the line through interpretive guidelines.

Compared with other major countries, the United States, the United Kingdom, Japan and Germany take the position that investment decisions themselves are not subject to strikes and that labor-management negotiations are limited to working conditions and employment. In Korea, by contrast, differing interpretations are gaining ground. Business groups are calling for the government to establish clear standards to protect new investment, and calls are growing for a balance between worker protection and investment.