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  • President Lee: Ignore Criticism of Policy Changes
    President Lee: Ignore Criticism of Policy Changes President Lee Jae-myung stated that the government should not be overly concerned about criticism regarding policy changes made in response to National Assembly feedback. During a Cabinet meeting at the Blue House, he emphasized that while the government should strive to present the best proposals, it is normal for policies to evolve during the legislative review process.Lee remarked, "Some articles criticize the government for being inconsistent when it accepts the National Assembly's opinions and modifies policies, while others label it unilateral when agreements are not reached with the Assembly." He pointed out that criticism can arise regardless of the government's actions, saying, "Whether we move forward or backward, whether we stand still or sit down, there are instances where we are criticized for simply lying down."He urged that policies should naturally be proposed by the government and finalized through the Assembly's review, adding, "While the government must create the best proposals, I hope we remain steadfast even if changes occur during the legislative process."Lee also applied the same principles to the upcoming budget review, instructing that unnecessary expenditures should be boldly adjusted while focusing on key national tasks such as fostering super-gap growth, alleviating K-shaped polarization, promoting balanced development, nurturing talent, and building a future ladder for youth.He called for enhanced communication and public relations regarding policies, stressing the need for immediate responses to any misunderstandings or misinterpretations. Changes in tax expenditures and tax systems should be clearly explained to the public.Lee emphasized the importance of precisely distinguishing policy terminology and proactively explaining it to the relevant parties.During the Cabinet meeting, a total of 58 items were reviewed and approved, including four bills, 15 presidential decrees, and 38 general matters. Among these, 12 laws pertain to the national agenda of the Lee Jae-myung administration.Among the approved measures was an amendment to the Public Finance Recovery Act, which imposes penalties for failing to implement protective measures for whistleblowers reporting fraudulent claims against public finances. An amendment to the Procurement Business Act was also passed, imposing fines on companies that fail to submit required documents or provide false information during investigations of unfair procurement practices.Additionally, an amendment to the Basic Firefighting Act mandates insurance and mutual aid subscriptions for the Fire Chief and local governors to cover damages incurred during firefighting operations. A regulation clarifying the scope and procedures for the National Intelligence Service's response to international criminal organizations was also approved. Furthermore, an amendment to the Small and Medium Enterprise Startup Support Act reduced the period during which a business is not recognized as a startup from three years to one year when reopening in the same industry after closure.The meeting also included reports from five ministries on emergency national governance and response related to the Middle East conflict, achievements in developing independent AI models, strategies for realizing an AI democratic government, integration of high-speed rail, and follow-up actions on work reports.* This article has been translated by AI. 2026-08-25 17:24:00
  • Special Prosecutors Indictments to Face Court in September Amid Insurrection Charges
    Special Prosecutor's Indictments to Face Court in September Amid Insurrection Charges The second comprehensive special prosecutor team, led by Kwon Chang-young, will begin court proceedings next month regarding indictments stemming from investigations into allegations left by the third special prosecutor. Key cases, including involvement in martial law, military blacklists, and the leak of investigation information related to deceased Marines, have been scheduled for hearings, putting the special prosecutor's ability to prove guilt to the test.According to legal sources on the 25th, the court will hold trials and preparatory hearings for the comprehensive special prosecutor's indictments in September. Article 11 of the Special Prosecutor Act mandates that first-instance rulings on cases indicted by the special prosecutor must be delivered within six months from the date of prosecution.The Seoul Central District Court's Criminal Division 38-3, presided over by judges Choi Young-gak, Jang Seong-jin, and Jeong Su-young, will hold the first preparatory hearing for Lee Eun-woo, former head of the Korea Policy Broadcasting Institute (KTV), on September 9, regarding charges of insurrection propaganda.Lee is accused of repeatedly broadcasting news asserting the legitimacy of martial law and proclamations from December 3 to 13, 2024, while blocking and deleting content critical of the martial law. The special prosecutor has determined that the end of the insurrection is not the date of the lifting of martial law but rather the date of the passage of the impeachment motion against former President Yoon Suk Yeol on December 14, thus categorizing these broadcasts as a single act of insurrection propaganda.On the same day, the court will also conduct the first preparatory hearing for former Korea Coast Guard Commissioner Kim Jong-wook and former Planning and Coordination Officer Ahn Seong-sik, who are charged with abuse of authority and aiding insurrection. They are accused of augmenting personnel from the Coast Guard's joint investigation headquarters and preparing detention facilities during the martial law period.On September 10, the trial regarding military blacklist allegations against former National Intelligence Service Director Yeo In-hyung will commence. The Criminal Division 32 of the Seoul Central District Court, presided over by Judge Ryu Kyung-jin, will hold the first preparatory hearing for Yeo's abuse of authority charges.Yeo is accused of classifying military generals based on their connections with current ruling party figures, their regions, and schools for personnel decisions. He is also alleged to have compiled a list of about 30 military judges and prosecutors with ties to former Democratic Party lawmaker Choi Kang-wook.On the same day, the court will also hold the first preparatory hearing for former Presidential Office Civil Service Secretary Lee Si-won and former National Security Office Defense Secretary Lim Gi-hoon, who were indicted for leaking police search plans during the investigation into the death of Corporal Chae Soo-geun. The special prosecutor believes that the search plan from the Gyeongbuk Police Agency for the Marine Corps' 1st Division was communicated to the Marine Corps through Lee and Lim, as well as officials from the Ministry of National Defense.The first preparatory hearing for Hong Chang-sik, the Ministry of National Defense's legal management officer, regarding charges of dereliction of duty, will be held on September 15. Hong is accused of failing to provide necessary legal advice to Defense Minister Kim Yong-hyun and the Vice Minister during the martial law period.On September 16, the Criminal Division 38-1 of the Seoul Central District Court, presided over by judges Jang Seong-jin, Jeong Su-young, and Choi Young-gak, will conduct the first preparatory hearing for former President Yoon and former National Security Office Director Shin Won-sik.Former President Yoon is accused of instructing officials from the National Security Office and the Ministry of Foreign Affairs to convey messages justifying martial law to key allied nations, including the United States, the United Kingdom, Japan, and the European Union, immediately after the declaration of martial law. Former Director Shin is charged with conspiring with former President Yoon and former Deputy Director Kim Tae-hyo to secure external support for the legitimacy of the insurrection.On September 17, the first hearings for the involvement of the National Fire Agency and the Ministry of Justice's Corrections Headquarters in the martial law case will take place. The Criminal Division 37-1 of the Seoul Central District Court, presided over by judges Jang Seong-hoon, Oh Chang-seop, and Ryu Chang-seong, will hear the case against former Fire Agency Commissioner Heo Seok-gon and former Deputy Commissioner Lee Young-pal, who are charged with significant duties related to insurrection.The two are accused of relaying instructions from former Minister of the Interior and Safety Lee Sang-min to lower-level agencies regarding media blackouts and water supply interruptions. On the same day, the Criminal Division 37-3 will also hold the first preparatory hearing for former Corrections Headquarters Director Shin Yong-hae, who is accused of preparing for the detention of those violating the proclamation and directing a review of emergency parole measures based on instructions from former Minister of Justice Park Sung-jae.As the special prosecutor's investigation concludes, the focus of the cases will shift to maintaining the prosecution and the court's judgment. In the insurrection cases, a key issue will be whether the defendants were aware of the intent to disrupt the constitutional order while participating in the actions.* This article has been translated by AI. 2026-08-25 17:20:00
  • Muan Designated as Candidate Site for National Industrial Complex, Accelerating Growth in Honam Region
    Muan Designated as Candidate Site for National Industrial Complex, Accelerating Growth in Honam Region The Muan area in the integrated city of Gwangju, South Jeolla Province, has been designated as a candidate site for a new national industrial complex. This decision is part of the government's follow-up measures related to the relocation of the Gwangju military airport, which is expected to accelerate the development of a new growth industrial hub in the Honam region.On August 25, the Ministry of Land, Infrastructure and Transport announced that approximately 1.05 million pyeong (3.47 square kilometers) in the Hyeonggyeong-myeon area of Muan has been designated as the 'Muan National Industrial Complex candidate site' following deliberation and approval by the Industrial Location Policy Review Committee.This designation is a follow-up to the announcement made on December 17 of last year regarding the rapid designation of the Muan National Industrial Complex as part of the six-party consultation on the relocation of the Gwangju military airport. At the request of the integrated city of Gwangju, the committee, composed of relevant government departments and private experts, comprehensively reviewed the necessity of the project, site appropriateness, and regional balanced development effects before finalizing the candidate site.The designation of the Muan National Industrial Complex candidate site is seen as a foundation for expanding the industrial base in the Honam region. The city of Gwangju and Muan County plan to focus on attracting businesses and securing actual demand centered around regional strategic industries, while also detailing the subsequent procedures for establishing the industrial complex.The Ministry of Land, Infrastructure and Transport also plans to strengthen cooperation with local governments and relevant agencies during the industrial complex planning process. In particular, it aims to support the completion of the second phase of the Honam High-Speed Railway project, which includes the Muan Airport Station, by 2027, facilitating the growth of a logistics and industrial hub connected to Muan International Airport and the railway.As the Muan National Industrial Complex project is intertwined with the relocation of the military airport and the expansion of the regional industrial base, the speed of attracting actual businesses and completing transportation infrastructure is expected to be a key variable for its success.The Ministry of Land, Infrastructure and Transport plans to proceed with subsequent procedures, including the establishment of the industrial complex plan, in collaboration with local governments, to ensure that Muan can establish itself as a core industrial hub in the Honam region. 2026-08-25 17:20:00
  • U.S. Treasury Yields in Focus Ahead of Jackson Hole Meeting
    U.S. Treasury Yields in Focus Ahead of Jackson Hole Meeting Domestic government bond yields remain elevated as the market closely watches the upcoming keynote address by Kevin Warsh, Chair of the U.S. Federal Reserve, at the Jackson Hole meeting. If uncertainty regarding the Fed's interest rate path diminishes, there are expectations for further stabilization in domestic long-term rates.On August 25, the yield on three-year government bonds in Seoul closed at 3.836%, down 0.6 basis points from the previous trading day. The yield on 10-year bonds fell 1.5 basis points to 4.320%, while the 30-year yield decreased by 4.5 basis points to 4.632%.Although government bond yields have shown a retracement following a recent surge, they remain at relatively high levels. Factors such as the potential for domestic interest rate hikes, rising long-term rates in the U.S. and Japan, and increasing global fiscal burdens have exerted upward pressure on long-term yields.Given that domestic long-term rates are sensitive to movements in U.S. Treasury yields, the Jackson Hole meeting on August 28 is expected to be a pivotal moment. Warsh will deliver his first keynote address since taking office on that day.Since his appointment, Warsh has emphasized a shift away from forward guidance, indicating that monetary policy decisions will be based on economic indicators. Market participants are particularly interested in his assessment of recent inflation and employment data, as well as the future direction of monetary policy, rather than specific interest rate paths.The U.S. July Personal Consumption Expenditures (PCE) price index, set to be released the day before Jackson Hole, will serve as an initial indicator for these expectations. If inflation continues to ease, concerns about further tightening may diminish, potentially stabilizing the recently elevated U.S. long-term rates.This could also act as a downward factor for domestic government bond yields, which tend to align with U.S. rates. Conversely, if the PCE inflation exceeds market expectations and Warsh expresses strong concerns about inflation, the recent calming trend in global bond yields could reverse.The direction of the domestic bond market is likely to be determined by the stability of U.S. rates and the potential for further tightening by the Bank of Korea. Analysts suggest that if U.S. long-term rates stabilize and the perception grows that the end of the interest rate hike cycle is near in Korea, upward pressure on long-term yields may ease.Park Sang-hyun, a researcher at iM Securities, noted, "In July, the Fed maintained a hawkish stance, but the inflation and employment data released in August suggest that inflation uncertainty may have somewhat eased, leading to a reduction in hawkish rhetoric. The U.S. Treasury's decision to double the size of its bond buyback program also indicates a focus on stabilizing rates, suggesting that conditions are not favorable for Warsh to raise rates at this time."He added, "While government bond yields have stabilized somewhat recently, ongoing fiscal and debt burdens in the U.S. and Japan mean that rates may fluctuate at elevated levels for the time being. Additionally, domestic government bond yields could rise further in response to potential interest rate hikes."Meanwhile, the Bank of Korea will also participate directly in this year's Jackson Hole meeting. Governor Shin Hyun-sung and Monetary Policy Committee member Jang Yong-sung are scheduled to attend, with Governor Shin making his first appearance at Jackson Hole as a discussant. During his visit to the U.S., Jang will also present at a seminar hosted by the Dallas Federal Reserve.* This article has been translated by AI. 2026-08-25 17:16:00
  • Democratic Party Launches Innovation Task Force for Strategic Development
    Democratic Party Launches Innovation Task Force for Strategic Development The Democratic Party has launched an Innovation Task Force (TF) for its think tank, the Democratic Research Institute, aiming to enhance its independent role and utilize artificial intelligence (AI) technology to develop strategies for a winning party.On the afternoon of August 25, the Democratic Party held its first meeting for the Innovation TF at the National Assembly, marking the beginning of efforts to evolve the Democratic Research Institute into a strategic hub for the ruling party.Kang Deuk-gu, the head of the TF, stated, "The Democratic Research Institute has played a crucial role as a think tank, formulating the party's mid- to long-term policies and strategies and designing its vision." He emphasized the need to develop the institute to fulfill its role as the strategic headquarters of the ruling party.To achieve this, Kang outlined plans to innovate the Democratic Research Institute by focusing on its unique role, leading the party's mid- to long-term strategies and policies, enhancing research and analysis capabilities using AI technology, and strengthening local governance for successful decentralization.TF members, including lawmakers Ahn Tae-jun and Park Hee-seung, expressed their commitment to redesigning the party's policy production system and election strategies, with Ahn stating, "We will do our best from this starting point," and Park adding, "I will contribute to transforming it into a living think tank."Notably, Kim Yong, a prominent figure aligned with Lee Jae-myung and a candidate for the Supreme Council in the August 17 party convention, is also part of the TF. Kim remarked, "I will reflect the voices of the party, local governments, and ordinary members."Furthermore, the TF plans to officially commence its activities with a report from the Democratic Research Institute on August 27.After the meeting, Kang told reporters, "We aim to derive specific directions during the official report this Thursday, and we will strive to innovate the Democratic Research Institute in line with its original purpose."* This article has been translated by AI. 2026-08-25 17:08:00
  • Jang Dong-hyuk Marks One Year as Leader of People Power Party
    Jang Dong-hyuk Marks One Year as Leader of People Power Party Jang Dong-hyuk, leader of the People Power Party, is set to hold a press conference on August 26 to mark his first anniversary in office and outline the party's direction for the second half of his term. Amid speculation that Jang is advocating for a shift towards a 'member-centered' party structure to strengthen his leadership, both party insiders and outsiders are keenly awaiting the upcoming reform plan.According to the People Power Party, Jang plans to conduct the anniversary press conference on August 26. This marks the first time in four years that a party leader has completed a full one-year term since former leader Lee Jun-seok, who served for about 14 months. His successors, Kim Ki-hyun and Han Dong-hoon, resigned after approximately nine and five months, respectively.The People Power Party has experienced nearly a decade of turmoil since the impeachment of former President Park Geun-hye, with repeated leadership changes and the activation of emergency committees. Since the impeachment vote in December 2016, no party leader has completed a full two-year term. Jang is only the third leader to maintain his position for over a year, following Hwang Kyo-ahn and Lee Jun-seok, both of whom served for about 14 months. This context adds significance to Jang's 'one-year' milestone among party loyalists.During the press conference commemorating his first year, Jang is expected to unveil the party's reform plan. As he reaches the midpoint of his term, his thoughts on how to manage the party in the coming year are anticipated to be reflected in his remarks. Observers suggest that, given Jang's emphasis on transitioning to a member-centered party, the reform plan will likely include measures to incorporate member opinions into various party affairs. However, party leadership and spokespersons have remained tight-lipped regarding the specifics of the reform plan.There is also speculation that the announcement of the reform plan could spark debate within the party. Given the recent tensions between party loyalists and non-loyalists over internal issues, interpretations may vary on whether Jang intends to relinquish some of his authority or is using member engagement as a means to consolidate power. With numerous internal matters, including discussions on direct elections for local party chairs, and a parliamentary retreat scheduled for August 27-28, active exchanges of opinions on the party's future direction are expected in the near term.In this context, Lee Seong-gwon, a member of the 'Alternatives and Future' faction, suggested on his Facebook page that for the People Power Party's reforms to succeed, the process must start transparently by listening to and incorporating diverse opinions from both inside and outside the party. He urged the creation of a platform to gather the sentiments of party members and the public in the reform efforts.* This article has been translated by AI. 2026-08-25 17:08:00
  • Korean Game Companies Target European Market at Gamescom
    Korean Game Companies Target European Market at Gamescom Major game companies are skipping Korea's largest gaming expo, G-Star, to participate in Gamescom, the world's largest gaming event, in Germany. As the share of overseas sales for domestic game companies increases, the stage for unveiling new titles and connecting with global users is shifting from Korea to international venues.According to the gaming industry on August 25, Krafton, NCSOFT, Nexon, and Pearl Abyss will showcase new titles at Gamescom 2026, which begins on August 26 in Cologne, Germany.Krafton will present five titles, including an unreleased project from PUBG Studio, 'NO LAW', 'Project Zeta', 'Age Twister', and 'Tale: Unbound'. The company has assembled the most extensive lineup by including both self-developed games and publishing projects in collaboration with global developers.NCSOFT will unveil three titles at the Gamescom opening event: 'Aion 2', 'Sinder City', and 'Project Bonfire'. 'Aion 2' is set for global early access in September, while 'Project Bonfire' will reveal its official title and key concepts for the first time at this event. 'Guild Wars 3', developed by North American studio ArenaNet, will be showcased in the B2B section.After not participating in Gamescom last year, Nexon will set up a large booth through its subsidiary Embark Studios. While no new titles will be announced, the company will focus on its popular game 'Ark Raiders' during the exhibition.Pearl Abyss, in collaboration with Samsung Electronics, will create an experience space for 'Crimson Desert'. The game is nominated in two categories at the Gamescom Awards: 'Epic' and 'Best PC Game'. Pearl Abyss will allow attendees to experience the game directly using Samsung's high-performance gaming monitors. Additionally, Kakao Games will introduce its subsidiary Ocean Drive Studio's new title 'God Save Birmingham', an open-world zombie survival simulator set in medieval England, without direct participation.The decision by these major game companies to choose Gamescom over G-Star reflects a changing revenue structure.Krafton and Pearl Abyss have already established overseas sales as a core revenue source, with Krafton's overseas sales accounting for 95.9% of its total revenue. Pearl Abyss reported that 91% of its sales in the second quarter of this year came from overseas, with North America and Europe making up 75% of that figure. The global success of 'Crimson Desert' has further underscored the importance of international markets.Nexon has also seen rapid growth in sales from English-speaking regions following 'Ark Raiders'. NCSOFT recorded that overseas sales made up 52% of its total revenue in the second quarter, surpassing domestic sales for the first time.The approach of these game companies to international expansion is evolving. Previously, they focused on supporting various languages, but now they are diversifying content and operational strategies to consider regional cultures, preferences, play styles, and community characteristics. This expansion not only increases engagement with overseas users but also enhances collaboration with international business partners.An industry insider stated, “As the primary revenue sources for domestic game companies shift overseas, the stage for unveiling new titles and gauging user reactions is also moving to global gaming expos. To achieve success in international markets, it is essential to go beyond language translation and tailor content to regional tastes and cultures, along with continuous updates and local community management.”* This article has been translated by AI. 2026-08-25 17:04:00
  • Korea Railroad Corporation Hosts Forum on High-Speed Rail Integration and Future of Rail Industry
    Korea Railroad Corporation Hosts Forum on High-Speed Rail Integration and Future of Rail Industry The Korea Railroad Corporation (KORAIL) held a forum to discuss the direction of innovation and future vision for the rail industry ahead of the integration of high-speed rail in September.KORAIL announced on the 25th that it co-hosted the 'Future Rail Forum' with the Korean Association for Public Administration on the 24th at its headquarters in Daejeon.The forum aimed to share the benefits of high-speed rail integration for the public and discuss the future vision of the rail industry. It also addressed how to respond to socio-economic changes, including the transition to artificial intelligence and mobility.More than ten experts from academia and industry participated as panelists. They discussed the direction that South Korea's rail system should take under the theme 'Innovation and Future of Korean Rail State-Owned Enterprises.'In the first session, Hong Young-ho, head of KORAIL's Integrated Strategy Office, presented on 'High-Speed Rail Integration and Innovation in State-Owned Enterprises.' Kim Kyung-taek, a researcher at the Korea Transport Institute, spoke on 'Integration of Rail Subsidiaries and Innovation in State-Owned Enterprises.'The second session continued discussions on 'The Future Direction of the Rail Industry.' Professor Yoon Sung-il from Kangwon National University suggested key directions for rail policy aimed at regional balanced development, while Professor Jeong Won-hee from Konyang University presented on the direction of the rail industry in light of AI and mobility changes.The subsequent panel discussion covered topics such as innovation and sustainability in integrated rail services, enhancing the competitiveness of the rail industry amid changes in the AI and mobility ecosystem, and establishing rail policies for regional balanced development.As discussions on high-speed rail integration extend beyond mere operational restructuring to include expanding seat supply, unifying services, and restoring the public nature of rail, ensuring that the public can feel the benefits of integration is seen as a key challenge.KORAIL President Kim Tae-seung stated, “We are listening to the insights of various experts and the voices of the public to make high-speed rail integration the 'completion of Korean rail.' Above all, we aim to enhance the convenience of transportation that the public experiences in their daily lives and restore the public nature of rail so that everyone can travel conveniently and safely, realizing 'greater happiness together through unified rail.'”* This article has been translated by AI. 2026-08-25 17:04:00
  • U.S. and South Korea Confirm Commitment to Cooperation Amid North Korea Dialogue Prospects
    U.S. and South Korea Confirm Commitment to Cooperation Amid North Korea Dialogue Prospects U.S. President Donald Trump has expressed a willingness to meet with North Korean leader Kim Jong Un, sending a strong signal of interest. In light of this, the foreign ministers of South Korea and the United States have agreed to maintain close communication and cooperation, raising hopes for a resumption of dialogue between the U.S. and North Korea. On August 25, the Ministry of Foreign Affairs reported that Minister Cho Hyun and Secretary of State Marco Rubio held a 30-minute phone call the previous day to discuss U.S.-South Korea relations and issues on the Korean Peninsula. The ministry stated that the two ministers agreed to continue close communication and cooperation to maintain a robust U.S.-South Korea joint defense posture while working towards peace on the peninsula and resolving the North Korean nuclear issue. Minister Cho remarked, "We will do our utmost to ensure that President Trump's recent messages lead to a resumption of U.S.-North Korea dialogue and peace on the Korean Peninsula." Earlier, on August 16, Trump took to social media to express his discontent with the scale of U.S.-South Korea joint military exercises, stating, "Given that Chairman Kim and I have a very good relationship, I do not like that the U.S. has agreed to participate in joint military exercises with South Korea for a long time." He directed a significant reduction in the scale of these exercises. The regular U.S.-South Korea joint exercise, known as the Ulchi Freedom Shield (UFS), which is designed for defense in case of emergencies, was concluded early on August 21. Following Trump's directive, the training period was shortened from 11 days to 5 days. The Korean Conference of Religious Leaders (KCRP) issued a statement on the same day, acknowledging the importance of national security and defense capabilities to protect citizens. They expressed understanding of concerns regarding the adjustments to the joint military exercises. However, they emphasized that true security is not achieved solely through military strength but is strengthened through efforts to prevent conflict, build trust, and create lasting peace. They called for the adjustments to the joint exercises to be seen as an opportunity to lower tensions on the peninsula, restore trust between the two Koreas, and restart the stalled inter-Korean dialogue. Unification Minister Jeong Dong-young stated on August 21 regarding Trump's push for a U.S.-North Korea summit, "In a broader sense, we can see that a tectonic shift on the Korean Peninsula has begun with President Trump's actions." To transition from the resumption of U.S.-North Korea dialogue to a peace regime, the role of the South Korean government is crucial. Kyungnam University visiting professor Cho Yong-geun appeared on MBC Radio's 'Kim Jong-bae's Focus' and stated, "What is important now is U.S.-South Korea communication," advising that the Ministry of Foreign Affairs and the Ministry of Unification should work to clarify the desired outcomes of U.S.-North Korea dialogue. A senior official from the Ministry of Foreign Affairs noted, "It is necessary to maintain close communication on areas that require coordination between the U.S. and South Korea," adding that communication channels are functioning well. * This article has been translated by AI. 2026-08-25 17:00:20
  • Hyundai Motor Reaches Tentative Wage Agreement, Impacting Group Negotiations
    Hyundai Motor Reaches Tentative Wage Agreement, Impacting Group Negotiations Hyundai Motor and its labor union have reached a tentative agreement that includes a base salary increase of 100,000 won and a performance bonus of 400% plus 12.7 million won. While a vote by union members is still pending, the parties have cleared a significant hurdle. Following Hyundai Steel, the negotiations at Hyundai Motor are nearing completion, which is expected to positively influence labor negotiations at other affiliates such as Kia and Hyundai Mobis.◆ Tentative agreement reached after 111 days; individual wage increase effect estimated at 40 million wonThe tentative agreement was reached during the 17th round of negotiations held at the Ulsan plant from August 24 to 25. The agreement includes a monthly base salary increase of 100,000 won, a performance bonus of 400% plus 12.7 million won, 15 shares of stock, 500,000 won in welfare points, and a 200,000 won increase in summer vacation pay. The company also agreed to hire a total of 500 new technical workers, with 200 to be hired in the second half of next year and 300 in 2028. The union estimates that the wage increase effect for each member will reach 40 million won.Key issues from this year's negotiations, such as the increase in bonuses, will be revisited in next year's collective bargaining. Regarding the extension of the retirement age, it was agreed to implement it without expanding the wage peak system if related laws are amended. The parties also agreed to strengthen cooperation during the transition to future industries, recognizing the need to adopt technologies such as physical artificial intelligence and robotics to secure corporate competitiveness, and to share progress on new businesses and technologies.Despite initially threatening a full strike, the union and management found common ground after 111 days of negotiations. This year, the total strike time was recorded at 60 hours per member, which translates to 120 hours for a two-shift production line. Industry estimates suggest that production disruptions amounted to approximately 55,200 vehicles, resulting in a revenue loss of over 2.3 trillion won.If the tentative agreement is approved in the union-wide vote scheduled for August 31, Hyundai Motor's wage negotiations for this year will be finalized. The company has also agreed to lift all 10 injunctions related to damages incurred during union activities.◆ Impact on Kia and affiliate negotiations; subcontracting issues remain a variableThe tentative agreement at Hyundai Motor is expected to influence other group affiliates currently facing labor disputes. As the flagship company, Hyundai Motor's agreement has served as a benchmark for group labor negotiations. The Kia union began negotiations with management on the same day. Kia's third proposal, presented on August 20, included a base salary increase of 98,000 won, a performance bonus of 400% plus 12 million won, 45 shares of company stock, 200,000 won in traditional market gift certificates, and 50,000 won in special points. If the union accepts the management's proposal, the negotiations will conclude without a strike.However, labor disputes at parts suppliers like Hyundai Mobis remain unresolved. The production of finished vehicles relies on the timely supply of numerous parts, so a key strike could impact the production lines of Hyundai and Kia.The issue of subcontracting negotiations, following the implementation of the Yellow Envelope Law, also remains a variable. The Ulsan Regional Labor Relations Commission has recognized the employer status of Hyundai's in-house subcontracted production workers, cafeteria staff, and security personnel, increasing the likelihood of broader negotiation scopes in the future.An industry insider noted, "The results of Hyundai Motor's wage negotiations have traditionally served as a guideline for negotiations at group affiliates," but added, "With ongoing negotiations at affiliates and subcontracting issues, it will take time to resolve the overall labor uncertainties within the group."* This article has been translated by AI. 2026-08-25 16:56:10