Core Viewpoint - The article discusses the recent partial strike initiated by the Hyundai Motor Union in South Korea, aimed at negotiating better working conditions, including reduced working hours and increased wages, following unsuccessful collective bargaining talks with management [4][9]. Group 1: Strike Details - The Hyundai Motor Union, representing 42,000 members, will conduct a three-day partial strike across various factories in South Korea, including Ulsan, Jeonju, and Asan, with specific hours of work stoppage [4][6]. - The union's decision to strike came after the latest round of collective negotiations on September 2 failed to meet workers' demands, with 86% of voting members supporting the strike [4][7]. - The union is demanding a monthly wage increase of 141,300 KRW (approximately $101.23), allocation of 30% of the company's 2024 net profit for special performance bonuses, a reduction of the workweek from five days to 4.5 days, and an extension of the retirement age from 60 to 64 [4][7]. Group 2: Financial Impact - The strike is expected to significantly impact Hyundai's financial status, recalling a previous instance in 2016 where a large-scale strike resulted in losses of approximately 2.5 trillion KRW (around $18 billion) due to production halts [6][7]. - Hyundai's flagship Ulsan plant, the largest single automotive factory globally, produces a wide range of models, and the strike could disrupt production across all models [6][9]. Group 3: Broader Industry Implications - The ongoing labor tensions in the South Korean automotive industry are highlighted, with the strike potentially setting a precedent for other major manufacturers in handling wage disputes and workweek adjustments [9]. - The union's demands for a new business notification obligation reflect a growing concern over job security as Hyundai expands into new business areas, such as robotics and advanced air mobility [11][13]. - The article notes that while the strike may not drastically affect global vehicle shipments, it underscores the persistent labor-management tensions within the South Korean automotive sector [9]. Group 4: Sales Performance - Despite the strike, Hyundai's sales in the U.S. reached a record high in August, with total sales of 88,523 units, a 12% year-on-year increase, driven by strong demand for electric vehicles like the Ioniq 5 [15][18]. - The contrasting performance between the booming U.S. market and the domestic challenges in South Korea illustrates the duality of Hyundai's operational landscape [15][18]. - The article also mentions that the strike could accelerate the localization of production in response to economic uncertainties stemming from labor disputes [18][19].

Group 1 - The Supreme Court has clarified that any agreement to not pay social insurance is invalid, allowing workers to terminate their contracts and demand economic compensation from employers [1][5][8] - The new regulation, effective September 1, aims to protect workers' rights and promote social fairness, despite concerns from some workers about reduced take-home pay and increased costs for small businesses [2][9][10] Group 2 - The prevalence of "non-payment" agreements has been noted, particularly among small and emerging businesses seeking to reduce labor costs, which undermines the integrity of the social security system [4][11] - Data shows a steady increase in the number of individuals covered by social insurance over the past five years, indicating a growing compliance with social security regulations [12][13] Group 3 - The new judicial interpretation raises the compliance costs for businesses, compelling them to include social insurance expenses in their operational budgets, which may lead to a shift towards more compliant labor practices [10][15] - There is a need to balance the financial burden on individuals and businesses, as the requirement to pay social insurance may reduce immediate income for workers while increasing operational costs for employers [16][17] Group 4 - Experts suggest that reforms are necessary to optimize the social insurance system, including lowering rates for small businesses and creating more flexible payment mechanisms for individuals [17][18]