Hyundai union back in wage talks after rare full-day strike

In a rare full-day strike, Hyundai Motor's union resumed wage negotiations with management on August 24, marking its first such action in a decade. Approximately 40,000 employees walked off the job after discussions over pay and retirement ended in deadlock. The strike, which affected the world's largest carmaker, came amid fears of job security as artificial intelligence reshapes South Korea's automotive industry, a key economic driver.

A union representative disclosed to AFP that talks with management would restart at 2:00 pm local time. Although a planned four-hour walkout on August 21 was canceled, another strike might occur on August 25, contingent on the outcome of today's negotiations. The union is demanding a 149,000 won (S$137) rise in the basic monthly salary, a 50% boost in bonuses, and an increase in the retirement age.

The union has conducted 60 hours of strikes in 2026, resulting in estimated losses of around US$1.6 billion, according to Newsis calculations. Hyundai Motor, however, stated it cannot "accept the union's demands without a solid legal or rational basis." Despite posting record second-quarter revenue of 49.2 trillion won, Hyundai's operating profit declined 20.8% year-on-year due to weakened sales.