| | | Government and Democratic Party Discuss Enacting Special Law for Display Industry
- Editor Kim Eun-jin
- 2025.05.22 14:16
Calls for Extraordinary Measures Grow Amid Rapid Chinese Catch-up
 Samsung Display’s stretchable display product (Photo courtesy of Samsung Display)
South Korea is moving to enact a tentatively titled “Special Act to Strengthen Competitiveness in the Display Industry,” which would include exemptions from the 52-hour workweek regulation for research and development (R&D) personnel. The legislation is being proposed as China aggressively closes the technology gap with South Korea by injecting astronomical subsidies into its display industry. The special law would also include provisions to provide subsidies to domestic display manufacturers. Once enacted, the legislation is expected to boost not only major firms such as Samsung Display and LG Display, but also thousands of small and medium-sized enterprises within their supply chains.
According to industry sources on May 21, Democratic Party lawmaker Lee Jae-kwan, a member of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee, is engaged in discussions with the Ministry of Trade, Industry and Energy and the Korea Display Industry Association regarding the legislation. Lee’s office is actively collecting feedback from the industry to reflect in the draft bill, and plans to finalize the proposal after additional expert forums and stakeholder consultations following the June 3 presidential election.
Like the Special Act for Semiconductors, the Display Industry Special Act is expected to include provisions that exempt R&D staff from the standard 52-hour workweek. Other measures under serious consideration include subsidies for consumers who purchase products incorporating domestically produced display panels, and an extension of the tax credit carry-forward period for national strategic technologies from the current 10 years to 20 years. A senior government official noted, “Following the inauguration of the new administration, exemptions to the 52-hour workweek under the semiconductor and display special laws may be discussed.”
Additionally, lawmaker Lee’s office and the government are considering R&D support for emerging markets such as defense-use displays, as well as proactive strategies for non-emissive display technologies. Unlike semiconductors and batteries, South Korea’s display industry is still largely based domestically, which means the introduction of a special law, along with tax credits, is expected to generate fewer side effects or controversies. Lee Dong-wook, vice chairman of the Korea Display Industry Association, warned, “Extraordinary measures are necessary if we are to avoid the same fate as Japan, which lost its competitiveness in the display sector.” However, Lee’s office later clarified, “While we are considering the enactment of a special law, discussions on exemptions to the 52-hour workweek have not yet taken place.” |
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