Hyundai and Kia Unveil Bold Wage Demands: Will 30% Profit Sharing Become Reality in 2026?

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[iNews24 Reporter Seol Jae-yoon] Hyundai Motor and Kia have opened this year’s wage and collective bargaining negotiations. The labor unions are demanding a performance bonus equal to 30% of net profit and guarantees for employment conditions as robots are introduced.

Industry sources said on the 7th that Hyundai’s management and union began talks with an introductory meeting held the previous day. Kia’s union has also finalized its list of demands ahead of formal bargaining.

The union’s proposal calls for a performance bonus equal to 30% of last year’s net profit. The union argues the company should share its record-high earnings with members.

If the demand is accepted, Hyundai would need to allocate roughly 3.11 trillion KRW (about $2.33 billion) and Kia about 2.72 trillion KRW (about $2.04 billion) for the bonuses. Those amounts would exceed the companies’ operating profits for the first quarter of this year.

So far, management has resisted a strict profit-linked formula and has preferred a mix of fixed amounts and ratios. Last year the union also sought 30%, but the parties ultimately agreed on “450% of base pay + 15,800,000 KRW (about $11,850).”

Another central issue in this round of talks is whether the companies will guarantee workers’ conditions amid robot deployment. As Hyundai has detailed plans to deploy Boston Dynamics’ humanoid robot Atlas on the shop floor, union anxiety has risen.

The union’s demands explicitly call for protections for workers affected by AI and robot adoption, arguing that expanded automation will likely shrink the role of current production workers.

The union also put the following items on the bargaining table: △ raise base pay by 149,600 KRW (about $112) △ expand bonuses by 800% △ implement a full monthly-salary system.