A South Korean labor dispute escalated on Friday as Hyundai Motor’s union staged its first full strike in a decade, halting production at the automaker and its affiliates amid stalled wage negotiations.
The walkout, involving roughly 40,000 Hyundai Motor union members, followed the collapse of talks over key demands including a higher retirement age, increased bonuses and protections against job losses from automation. Approximately 3,000 union members and supporters gathered for a rally outside Hyundai’s headquarters in Seoul, according to organizers.
The strike underscores broader labor tensions in South Korea following the election of President Lee Jae Myung, who has pledged to gradually raise the national retirement age in response to the country’s aging workforce. Hyundai’s union spokesperson, Kim Jin-wook, said the two sides remained far apart on retirement age, bonus levels and job security guarantees, adding that the union would consider further strike action if Hyundai failed to present “forward-looking proposals.”
Hyundai, which owns humanoid robotics firm Boston Dynamics, has outlined plans to deploy humanoid robots at its U.S. plant in Georgia starting in 2028, with broader automation initiatives expected across its global operations. The automaker warned that strike action could disrupt customers, partners and operations, urging both sides to engage in dialogue to navigate the transition to future mobility.
Partial walkouts since late July have already disrupted production of 55,200 vehicles valued at over 2.3 trillion won ($1.67 billion), according to estimates from Yonhap News Agency. Hyundai had previously cautioned that it expected to miss its annual global sales target due to intensifying competition from Chinese automakers in Europe and declining domestic demand in South Korea.
The exchange rate cited in the dispute was 1,381.2700 won per U.S. dollar.
