Seoul, South Korea | April 20, 2026

In a major development within South Korea’s automotive sector, the labour union of Hyundai Motor Group has demanded performance bonuses equivalent to 30% of the company’s net profit, significantly intensifying ongoing wage negotiations.

Massive Bonus Demand After Record Profits

The demand comes after Hyundai reported a strong financial performance in 2025, posting a net profit of 10.36 trillion won (approximately USD 7.06 billion).

If accepted, the union’s proposal would result in a bonus payout exceeding 3 trillion won (around USD 2 billion), making it one of the largest employee compensation demands in the company’s history.

Salary Hike and Increased Bonus Structure

In addition to profit-sharing, the union has proposed several financial enhancements, including:

A monthly base salary increase of 149,600 won (USD 101.90)
Raising standard bonuses from 750% to 800% of base pay

These demands reflect growing expectations among workers following Hyundai’s strong earnings performance.

Focus on Job Security and AI Impact

Beyond financial demands, the union is also pushing for structural changes aimed at long-term workforce stability. Key concerns include:

Job security amid increasing use of artificial intelligence (AI)
Extending the retirement age to 65
Commitment to additional hiring

The union has also emphasized that profit-based bonuses should be equally distributed among employees of Hyundai’s partner firms, not just direct staff.

Industry-Wide Trend in South Korea

This move is part of a broader trend across major South Korean corporations.

The labour union at Samsung Electronics has demanded bonuses funded by 15% of operating profit, potentially leading to payouts of nearly 45 trillion won.
Meanwhile, SK hynix has already agreed to allocate 10% of its operating profit toward employee bonuses, which could reach 20 trillion won.

Rising Pressure on Corporations

The increasing scale of union demands highlights rising pressure on large conglomerates to share profits more equitably with employees.

Experts suggest that these negotiations could reshape compensation structures across industries, especially as companies balance profitability with workforce expectations and technological transformation.

Hyundai’s ongoing negotiations will be closely watched as a benchmark for labour relations in South Korea. The outcome could set a precedent not only for the automotive sector but also for other industries facing similar union pressures.