Core Viewpoint - The article discusses the challenges faced by the South Korean semiconductor industry, particularly in relation to labor regulations, competition from China, and the need for increased investment and flexibility in work hours to remain competitive in the global market [1][2][3]. Group 1: Labor Regulations and Industry Challenges - South Korean semiconductor companies are struggling with strict labor regulations that limit working hours, which hampers their ability to meet customer demands and compete with international rivals [2][3]. - The recent legislative changes, such as the K-chip law, have not sufficiently addressed the industry's need for flexibility in work hours, particularly for research and development personnel [1][4]. - There is a growing concern that the current labor policies may lead to a talent drain, as skilled engineers may seek opportunities in countries with more favorable working conditions [5][6]. Group 2: Competition and Technological Development - Chinese companies are rapidly advancing in semiconductor technology, posing a significant threat to South Korean firms, particularly in the DRAM market [3][4]. - The article highlights that while South Korea has increased its investment tax deduction rate to 30%, it still lags behind China's 220%, which could hinder immediate investment in technology [4][5]. - The urgency for South Korean companies to innovate and adapt to AI technology is emphasized, as failure to do so may result in losing market share to Chinese competitors [3][5]. Group 3: Investment and Talent Development - The semiconductor industry requires substantial investment in both technology and human resources to maintain competitiveness, yet there is a shortage of skilled engineers globally [5][6]. - Companies are attempting to cultivate talent through partnerships with universities and internal training programs, but this process is time-consuming and may not meet immediate industry needs [5][6]. - The article stresses the importance of allowing core researchers to have flexible working hours to maximize productivity and innovation in a highly competitive environment [5][6].