South Korea’s semiconductor policy took a step forward with the passage of the K-Chips Act Tuesday in the National Assembly’s Strategy and Finance Committee, advancing critical tax incentives and R&D support for the industry. However, the broader Semiconductor Special Act, which included a contentious exemption to the 52-hour workweek rule for semiconductor workers, remains stalled.

This mixed outcome highlights the persistent challenges in South Korea’s industrial policy and the difficulty in separating economic strategy from political conflict. While the passage of new tax incentives will provide short-term relief, lingering regulatory uncertainties could still undermine long-term competitiveness.