Hyundai Motor Reaches Wage Deal to End First Strike in Decade

Approximately 40,000 union members from Hyundai Motor and affiliate Kia Corp staged their first full-scale strike in a decade on August 21, 2026. Workers held a rally at the company's Seoul headquarters to demand higher wages, increased bonuses, and a raise in the mandatory retirement age from 60. A primary driver of the unrest was job security amid the adoption of artificial intelligence and automation, specifically the planned deployment of Boston Dynamics humanoid robots at a Georgia plant by 2028.

Following a series of partial walkouts since July that disrupted the production of 55,200 vehicles, management and the union reached a tentative agreement on Tuesday. The deal includes a monthly base salary increase of 100,000 won, a performance bonus, and welfare points. To address fears that robotics would replace human labor, the agreement stipulates the hiring of 500 new technical workers between 2027 and 2028.

The resolution prevents a total production shutdown at Hyundai's primary factory in Ulsan, which accounts for roughly 25% of the company's total output. While the union had previously sought to allocate 30% of net income for bonuses, the current deal focuses on immediate wage gains and guaranteed headcount growth to counter automation.