Walking through the streets of Shenzhen, one encounters a constant stream of unfamiliar cars. It is often difficult to identify the manufacturer just by looking at the emblem, indicating the fierce competition among numerous automotive brands in a limited market. The bright lights illuminating the corporate headquarters of major companies in Shenzhen late into the night reflect the impact of 'Red Tech' on the automotive industry.
The rapid growth of Chinese electric vehicles, which are releasing new models and technologies at an astonishing pace, is driven by intense labor demands and fierce competition for talent. Considering the clear results produced by the manufacturing sector, the current growth of Chinese cars seems inevitable. However, this success comes at the cost of sacrifices made by young workers in China.
One source I met in Shenzhen expressed concern, saying, "By their mid to late 30s, people start worrying about job security." In South Korea, those in their 30s are often seen as candidates for layoffs. There is even a saying about the 'curse of turning 35,' suggesting that many return to their hometowns before reaching their 40s. Their positions are filled by the influx of new graduates each year. As of last year, the average weekly working hours in China reached 48.6 hours.
While China maintains its demanding work culture, South Korea has seen a steady decline in working hours. According to the 'Social Trends in Korea 2025' report published by the National Statistical Office, South Korea's average weekly working hours peaked at 55.8 hours in 1988 and fell to 37.7 hours by 2024. This shift reflects a growing emphasis on work-life balance and job security.
The era in which China was merely catching up to South Korea has ended. Now, there are increasing areas where South Korea must catch up to China. A survey conducted by the Korea Economic Association last year revealed that 62.5% of responding companies identified China as their primary competitor. In five sectors, including automotive and parts, China's competitiveness was rated higher than South Korea's. By 2030, it is projected that China will surpass South Korea in all ten major industries.
What we need to focus on is not just China's working hours but their speed and intensity. The rapid pace at which they develop technology, produce products, and bring them to market, along with the competitive ecosystem of electric vehicles where capital and talent flow to successful companies, is a significant concern for South Korean industries.
This is not a call to return to the past. However, it is essential to embrace the speed, technology, and bold investments that have fueled their competitiveness. South Korea's automotive industry must find ways to enhance productivity while maintaining its current strengths. There is a need to expand hybrid technologies and sports utility vehicles (SUVs), which are recognized for their competitiveness in the global market compared to China. Exploring ways to increase productivity is crucial. Hyundai Motor's emphasis on utilizing artificial intelligence (AI) across the company, rather than limiting it to specific areas, can be seen as a move to enhance both productivity and operational efficiency.
During a recent CEO Investor Day, José Munoz, the president of Hyundai, stated that the company aims to boost productivity through partnerships with global firms. Amid rising raw material costs and increasing demand for advanced specifications, the company is looking to achieve economies of scale. As Hyundai cannot escape the challenges of labor, its focus on 'AI' and 'partnerships' may provide a solution to counter China's aggressive competition.
* This article has been translated by AI.
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