Hyundai Motor to pay USD 1.8 bn in bonuses to Korean employees despite U.S. tariff headwinds
Seoul [South Korea],: Hyundai motor, Korea’s union in Korea to distribute more than 2 trillion Won bonus, Maeil Business newspaper, Korea’s English service, according to a report made by Pulse, even if it faced difficulties from the high US tariffs reached an agreement.
According to the agreement announced on Wednesday, Korean employees will receive 100,000 profitable basic wage increase, 450 percent of the basic wage and 15.8 million collective payment and 30 Hyundai engine shares equivalent to performance bonuses. With an average of 4 million profitable basic wages, each employee is expected to receive approximately 40 million profitable incentives, and the total payment is estimated to be 2.5 trillion Won for 63,000 employees of Hyundai. This figure represents approximately 40 percent of the company’s consolidated net profit, which was gained 6.63 trillion in the first half of the year.
However, according to the report, the appearance of the rest of 2025 remains unclear. Seoul and Washington discussed the tariffs from 25 percent to 15 percent, while the decision is still waiting for US President Donald Trump’s executive order. Japan will see that the tariff has fallen to 15 percent from 16 September 2025, but Korea has not yet secured the same conditions. In addition to tension, delays in the completion of Hyundai Motor’s Georgian facility due to the detention of local Korean personnel may disrupt the supply of batteries in the US market.
The agreement also reflected demands for union occupational safety; The two sides agreed to internalize the production of a six -speed transmission for palisade hybrid, targeted mass production until the end of 2027. Currently provided by Hyundai Transys, transmission can be produced directly by the Hyundai motor and can reduce orders for the affiliated organization. Since the labor force costs in Hyundai Motor are higher than Hyundai Transys, it can also increase motion costs.
The union also included statements on the expansion of in -house production of key electric vehicle components such as batteries, although Hyundai rejected direct battery production plans. Analysts say that the demand for internal combustion engines and relevant transmissions has reflected their efforts to re -appoint workers, and the union gives priority to long -term retirement age and occupational safety.
The agreement also offers training software experts in production facilities that are compatible with the transition of the industry to software -defined vehicles.
The temporary agreement will vote at the general meeting of the Central Labor Council on September 15, 2025 and will be able to follow more strikes if rejected. It was estimated that the 16 -hour strike of the previous week caused more than 400 billion losses in Hyundai in seven years.
“Meanwhile, the Hyundai Mobis Union came out of negotiations and partial strikes this week despite the temporary settlement of the Hyundai Motor. Hyundai Transys, which still flames from a long strike in 2024, is against Seongyeon Plant’s 68,000 profitable basic payment production,” 250 profitable money and 250 profitable share, “250 profitable luxury sutum.”
This article was created from an automatic news agency feeding without changing the text.
