POLICY INSIGHT

INDUSTRY & ECONOMIC POLICY

Semiconductor Special Act Enforcement Decree Takes Effect August 11: Priority Designation for Non-Capital Region Clusters and Special Account to Run Until 2036

The Semiconductor Special Act and its enforcement decree took full effect on August 11, formally activating the national support system approximately six months after the law's enactment on February 10. A new Presidential Committee on Strengthening Semiconductor Industry Competitiveness has been established as the overarching control tower to oversee cluster designations and review master plans. Infrastructure costs for clusters will be subsidized by the central and local governments at 50% to 100% of total project expenses, with complete funding for redundancy and supply chain stability facilities, and a non-capital region priority principle explicitly codified. A dedicated special account operational until 2036 secures a mid-to-long-term financial channel, complemented by the designation of training institutions to connect regional professionals with employment and retraining. However, the 52-hour workweek exemption clause was ultimately excluded due to strong opposition from labor unions. With the implementation coinciding with a boom period—July semiconductor exports reaching $41.0 billion, accounting to 40.3% of total exports—the speed of execution and securing financial resources remain key focal points.