Seoul: The National Assembly has passed a pivotal bill aimed at enhancing support for the semiconductor industry, which is a cornerstone of South Korea's export economy. The legislative move underscores the country's intent to boost its global competitiveness in this critical sector.

According to Yonhap News Agency, the bill received approval during a plenary session, establishing a legal framework for comprehensive government backing of semiconductor clusters and the associated infrastructure. Key elements of the bill include provisions for designating semiconductor clusters and setting up a legal foundation for financial aid.

The bill's implementation is expected to ease regulations related to the development and expansion of essential infrastructure, including power supply, water resources, and transportation networks. Furthermore, it paves the way for both central and local governments to offer tax incentives to semiconductor companies.

Notably, the bill does not include an exception to the 52-hour workweek regulation, despite industry appeals to allow semiconductor researchers extended working hours when necessary. This particular stipulation was a contentious issue in the discussions between ruling and opposition parties.

The enactment of this legislation follows a period of record earnings for major chipmakers such as Samsung Electronics Co. and SK hynix Inc., driven by robust demand for chips used in artificial intelligence. SK hynix is currently developing new chip production lines in Yongin, approximately 50 kilometers south of Seoul. Samsung Electronics also has plans to build new fabrication lines in the area, which is anticipated to evolve into the country's primary semiconductor hub.