Hyundai union demands 30% profit-linked bonus alongside pay hike proposals

The labour union at Hyundai Motor Group has demanded a performance bonus equivalent to 30% of last year’s net profit, alongside a pay rise and broader workforce measures, in a move that escalates ongoing wage negotiations.

The proposal follows a year in which the automaker reported net profit of 10.36 trillion won, or about $7.06bn, for 2025. According to The Korea Herald, the union’s demand would translate into a payout exceeding 3 trillion won, roughly $2bn, if accepted.

Pay and bonus demands set out

Alongside the profit-linked bonus, the union has proposed a monthly base salary increase of 149,600 won. It is also seeking to raise standard bonuses from 750% to 800% of base pay.

The union said the performance bonus tied to net profit should be distributed equally among employees at Hyundai Motor’s partner firms, expanding the scope of the payout beyond the core workforce.

Workforce concerns tied to technology

The demands extend beyond compensation. The union is calling for measures to address the impact of artificial intelligence on manufacturing jobs, including stronger job security provisions.

It has also proposed extending the retirement age to 65 and called for additional hiring commitments, linking pay negotiations with longer-term workforce stability.

Part of a broader trend in Korea Inc

The scale of the proposal reflects a wider pattern across major South Korean conglomerates. According to The Korea Herald, labour unions at other large companies are also seeking significant profit-linked bonuses.

At Samsung Electronics, the union has asked for bonuses funded by 15% of operating profit with no upper limit. Market analysts expect the company to record operating profit of around 298 trillion won, potentially resulting in a bonus pool of nearly 45 trillion won, the report said.

A similar approach has been seen at SK hynix, which agreed last year to allocate 10% of operating profit to bonuses. With forecast operating profit of about 200 trillion won, the potential payout could reach 20 trillion won.

The Hyundai union’s demands signal a more assertive stance in wage talks, combining immediate financial gains with structural changes tied to technology and employment.

How the company responds will be closely watched, both for its impact on labour relations within Hyundai and as a benchmark for negotiations across South Korea’s industrial sector.