Hyundai Motor Group strengthens labor risk response system

May 08, 2026, 11:57 am

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Labor and management representatives of Hyundai Motor Company face each other during the opening session of 2026 wage negotiations held at the company’s Ulsan plant headquarters on May 6. /Hyundai Motor

Hyundai Motor Group has strengthened its labor risk management system by elevating its labor affairs control tower to the presidential level and appointing senior executives to key labor-related posts.

The group named Choi Jun-young as president in charge of policy development overseeing labor affairs across the conglomerate. The move comes as labor-related risks rise across Korean industries following implementation of the so-called “Yellow Envelope Law,” a revision to Articles 2 and 3 of the Trade Union Act that expands corporate liability in labor disputes.

At the same time, Hyundai Mobis appointed Jung Sang-bin as executive vice president in charge of labor-management policy.

Labor tensions within the group are intensifying ahead of annual wage negotiations. The labor union at Hyundai Motor Company is demanding a monthly base salary increase of 149,600 won ($107) along with performance bonuses equivalent to 30% of last year’s net profit.

In addition, the Korean Metal Workers’ Union has warned of three rounds of general strikes beginning in July if Hyundai Motor Group refuses to participate in negotiations with primary contractors. A subcontractor union at Hyundai Mobis is also opposing the sale of the company’s lamp business division while demanding talks with the parent company.

According to Hyundai Motor Group, Choi, born in 1963, has been credited with improving labor-management practices at Kia Corporation, helping strengthen productivity and quality competitiveness while supporting the automaker’s earnings growth.

He has also led Kia’s transition toward future mobility manufacturing, including development of dedicated electric vehicle plants and the transformation of production facilities into future-oriented AutoLand factories.

Jung, born in 1968, previously served as head of the policy development team, policy planning team and policy development office. The company said he will oversee labor-related affairs based on his extensive expertise in labor management.

Meanwhile, Kia appointed Song Min-soo as head of domestic production. Song previously served as head of the AutoLand Hwaseong plant and labor-management cooperation office.

A Hyundai Motor Group official said the executive reshuffle was aimed at strengthening labor affairs and production operation capabilities, adding that experience and expertise were key considerations in the appointments.

#Hyundai Motor Group #Kia #labor unions #wage negotiations #Yellow Envelope Law