Samsung Electronics has become the first company in South Korea to secure government approval allowing its employees to work beyond the country's legally mandated 52-hour workweek. The Ministry of Employment and Labor’s Gyeonggi branch granted the exemption specifically for Samsung’s System LSI division, which focuses on semiconductor research and development.

This move comes on the heels of regulatory changes made last month, aimed at boosting productivity in the nation’s vital semiconductor industry. Under the new guidelines, Samsung’s chip division employees can now work up to 64 hours per week for the first three months, and up to 60 hours per week for the following three months—a notable increase from the previous nationwide cap.

For years, South Korea’s 52-hour workweek limit, introduced to promote better work-life balance and protect employee health, has been criticised by several high-tech companies for stifling productivity, particularly in sectors like semiconductors that face intense global competition and aggressive timelines.

Samsung, in particular, had reportedly raised concerns last year that the restrictions were hampering its ability to meet critical project deadlines. The System LSI division, responsible for designing advanced chips, has been under mounting pressure to improve performance and secure key contracts. The company is currently facing multiple hurdles, including enhancing yields of its 2nm process technology and overcoming delays in High Bandwidth Memory (HBM) chip orders, particularly from industry giant NVIDIA.

The semiconductor market is one of South Korea’s most strategic economic sectors, accounting for a significant share of the country’s exports. In an effort to safeguard its competitive edge, the government revised labour rules to allow exemptions for select high-value industries. Samsung is now the first beneficiary of this relaxation, but several other local semiconductor firms are reportedly preparing to apply for similar exemptions.

However, the government’s decision has sparked a debate about worker rights and corporate responsibility. Notably, details on whether employees will receive additional compensation for the extended hours have not been disclosed. Labour groups and critics are likely to question whether such policies undermine the very intent of the original 52-hour cap, which was introduced to curb overwork and reduce stress-related health issues.

Proponents argue that the exemption is a necessary step for maintaining South Korea’s dominance in the global chip industry, especially as international competitors push the boundaries of innovation and speed. For Samsung, the ability to stretch working hours could mean faster development cycles and improved market responsiveness—crucial factors in a space where delays can cost billions.

Still, the long-term impact of such a move remains uncertain. While it may offer short-term gains in productivity, sustained overwork could also lead to burnout, reduced employee morale, and higher attrition rates—risks that Samsung and other firms will need to manage carefully.

As South Korea continues to walk the tightrope between economic competitiveness and employee welfare, the Samsung case is likely to set a precedent for how the government and corporations navigate the evolving demands of a high-tech economy.