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Hyundai Union Demands 30% of Net Profit, Sparking Major Bonus Battle

The labour union at Hyundai Motor Group is demanding a performance bonus equivalent to 30% of the company's substantial 2025 net profit, a payout that could exceed 3 trillion won. The union's proposal also includes a base salary increase and a hike in standard bonus rates. Alongside financial demands, it is seeking job security guarantees related to AI, an extension of the retirement age, and commitments to new hiring. This aggressive stance mirrors similar large bonus demands from unions at other leading South Korean conglomerates like Samsung Electronics and SK hynix.

Key Points: Hyundai Union Demands 30% of Net Profit as Bonus

  • Demands 30% of net profit as bonus
  • Seeks monthly salary increase & higher standard bonus
  • Pushes for AI job security & extended retirement
  • Part of wider trend at major Korean firms
2 min read

Labour union of Hyundai Motor demands 30% company's net profit as performance bonuses

Hyundai Motor's labour union demands a 30% share of net profit as bonus, plus salary hikes and job security, amid similar big demands at Korean conglomerates.

"the bonuses based on last year's net profit should be equally distributed to employees at Hyundai Motor's partner firms. - Hyundai Motor labour union"

Seoul, April 20

The labour union of Hyundai Motor Group is seeking a performance bonus equivalent to 30 per cent of the company's net profit from last year, marking a significant escalation in labour negotiations for South Korea's leading automotive conglomerate. This demand follows a fiscal year in which the automaker posted a substantial 10.36 trillion won in net profit for 2025.

If the company meets these terms, the payout would amount to more than 3 trillion won, which is approximately USD 2 billion, according to a report by The Korea Herald.

Beyond the profit-sharing percentage, the labour union's proposal includes a monthly base salary increase of 149,600 won (USD 101.90). The union also seeks an increase in standard bonuses, moving the rate from 750 per cent to 800 per cent of base pay. These financial demands are paired with structural requests regarding the future of the workforce and the impact of new technologies on manufacturing roles.

The labour union said the bonuses based on last year's net profit should be equally distributed to employees at Hyundai Motor's partner firms.

In addition to the financial package, the union is pushing for job security in relation to artificial intelligence, an extension of the retirement age of up to 65, and a commitment to additional hiring.

The report stated that this hefty demand from the auto labour union came amid other major unions asking for big bonuses at Korea's leading conglomerates.

"Samsung Electronics' labour union has demanded performance bonuses funded by 15 percent of operating profit with no upper limit on this year's earnings. As market analysts expect Samsung Electronics to log about 298 trillion won on average, the company may end up spending nearly 45 trillion won on employee bonuses," the report noted.

A similar pattern is visible in the semiconductor industry. SK hynix, which reached a labour-management agreement in September last year, decided to allocate 10 per cent of its operating profit to bonuses. With the chip giant's operating profit forecast at around 200 trillion won (USD 136.23 billion) this year, the bonus pool could reach 20 trillion won (USD 13.62 billion).

- ANI

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Reader Comments

P
Priya S
While I support workers' rights, 30% of net profit seems very high. It could impact reinvestment and long-term growth. The demand for job security with AI is the most crucial point here. That's something Indian IT and manufacturing sectors need to address urgently.
R
Rohit P
Look at the scale of these numbers! 3 trillion won bonus pool... that's mind-boggling. Our Maruti Suzuki workers should take note. Strong unions lead to better compensation. Korean companies understand that a happy workforce is a productive one.
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Sarah B
The inclusion of partner firm employees in the bonus distribution is a very progressive and ethical demand. It shows they are thinking about the entire ecosystem, not just direct employees. More companies should adopt this holistic view.
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Vikram M
This is a bold starting position for negotiations. They will likely settle for 15-20%, which is still fantastic. The key takeaway for India is the demand related to AI and retirement age. We need policies that protect workers in the age of automation.
K
Karthik V
Respectfully, I have to disagree with the sheer amount. A company needs capital for R&D, especially in the competitive auto sector shifting to EVs. A 30% profit share might hurt future innovation. A balanced approach is better.
M
Meera T

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