Hyundai Strikes Bonus Deal Amid Tariff Challenges
Hyundai Motor has agreed to a 2 trillion won bonus payout to its Korean employees in 2025 amid growing challenges from U.S. tariffs. The deal, which also addresses job security and internal production goals, awaits a formal vote. Market uncertainties may affect further negotiations.
- Country:
- South Korea
Hyundai Motor Co. has come to a substantial agreement with its union in South Korea, promising to distribute bonuses over 2 trillion won ($1.80 billion) in 2025. The decision arrives despite the looming challenges posed by high U.S. tariffs, as reported by the English service of Maeil Business Newspaper, Pulse.
Under the newly forged deal, unveiled on Wednesday, Hyundai's Korean workforce is set to receive a 100,000 won ($71.95) increase in base pay, along with performance bonuses worth 450% of their base salary. Additionally, each employee is poised to collect a 15.8 million won ($11,117.48) lump sum and 30 Hyundai Motor shares.
Uncertainty clouds the outlook for 2025, with U.S. tariffs on South Korean auto exports unresolved. The industry faces additional hurdles from delayed completion of Hyundai's Georgia plant, potentially affecting U.S. battery supply. Nevertheless, job security and production internalization are focal points of the agreement, reflecting strategic adjustments as demand shifts within the automotive sector.
(With inputs from agencies.)
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