What are the main terms of Hyundai Motor’s tentative wage deal with its union?

The tentative deal raises monthly base pay by 100,000 won and gives a performance bonus of more than 400 percent of monthly salary. It also includes an additional 12.5 million won payment and a possible extension of the retirement age to 65 if laws and regulations are revised.

Why did Hyundai Motor and its union reach a deal after repeated strikes?

The strikes had already caused production disruptions, including about 120 hours across two shifts. The union had staged a combined 60 hours of strikes this year, and the company said the agreement was reached at the 17th round of talks.

What future technology plans did Hyundai Motor mention in connection with the wage agreement?

Hyundai Motor said both sides shared the view that physical AI and robotics are essential to the company’s future competitiveness and survival. The company also said they agreed to share information on new projects and jointly respond to future changes in the industry, as Hyundai plans to deploy humanoid robots at its Georgia plant starting in 2028.

Hyundai Motor, labor union tentatively reach wage deal

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Summary

Hyundai Motor Co. and its labor union tentatively reached a wage agreement early Tuesday after a series of strikes disrupted production. The deal includes a 100,000 won monthly base-pay increase, a performance bonus of more than 400 percent of monthly salary, and an additional 12.5 million won payment. The agreement also covers a possible retirement-age extension to 65 if related laws change. The union will vote on the deal on Aug. 31.

Key Facts

The union staged a combined 60 hours of strikes this year, causing about 120 hours of production disruptions across two shifts.
The strikes are estimated to have resulted in cumulative production losses of around 55,200 vehicles and lost sales of more than 2.3 trillion won.
The union’s first full-day strike in 10 years was part of the labor action.
Hyundai Motor said it and the union agreed to share information on new projects and jointly respond to future industry changes, including advanced technologies such as physical AI and robotics.

By Yonhap

Published Aug 25, 2026 8:01 am KST
Updated Aug 25, 2026 9:04 am KST

Members of the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions stage a protest in front of Hyundai Motor headquarters in Seoul, Friday. Yonhap

The management and labor union of Hyundai Motor Co. tentatively reached a wage agreement early Tuesday following a series of strikes that caused production disruptions.

The two sides reached an understanding at the 17th round of talks, agreeing to raise monthly base pay by 100,000 won ($72.20), provide a performance bonus of more than 400 percent of monthly salary and pay an additional payment of 12.5 million won, the automaker said in a release.

The two sides also agreed to extend the retirement age from the current 60 to 65 if related laws and regulations are revised.

If the agreement is approved in a union vote scheduled for Aug. 31, this year's wage negotiations at South Korea's largest automaker will be concluded.

The 400,000-member union staged a combined 60 hours of strikes this year, resulting in about 120 hours of production disruptions across two shifts. The labor action included a full-day strike Friday, the union's first such walkout in 10 years.

The strikes are estimated to have caused cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trillion won, according to industry sources.

Hyundai Motor said management and the labor union also shared the view that adopting advanced technologies, including physical artificial intelligence (AI) and robotics, is essential to the company's future competitiveness and survival.

"The two sides agreed to transparently share information on new projects and their implementation processes, and jointly respond to future changes in the industry," the company said.

The agreement comes as Hyundai Motor, which owns Boston Dynamics, the developer of the Atlas humanoid robot, plans to deploy humanoid robots at its U.S. manufacturing plant in Georgia starting in 2028, with plans to gradually expand their use across its other production facilities.

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