Hyundai Motor, GM Korea Face Subcontractor Union Pressure Despite Expanded Employer Liability Law

Reporter Kim Jisun / approved : 2026-05-29 06:38:57
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Members of the Korean Metal Workers' Union’s GM Korea branch hold a press conference in front of GM Korea headquarters on May 28, condemning the company for ignoring demands for direct negotiations with subcontractor unions. (Photo = Korean Metal Workers' Union)

 

[Alpha Biz= Kim Jisun] Subcontractor union disputes involving Hyundai Motor and GM Korea are intensifying despite the recent expansion of primary employer responsibilities under South Korea’s so-called “Yellow Envelope Law.”

On May 28, labor groups affiliated with the Korean Metal Workers’ Union held rallies and press conferences in Ulsan and Incheon, calling on the companies to engage in direct negotiations with subcontracted workers.

At Hyundai Motor’s Ulsan plant, multiple subcontractor unions—including non-regular workers, food service affiliates, logistics, and sales groups—gathered to demand participation from the parent company in collective bargaining. A total of 10 union branches, representing approximately 1,675 workers, have formally requested negotiations with Hyundai Motor.

Union leaders criticized the company for failing to respond to these requests, arguing that even after the new law expanded the scope of employer responsibility, primary contractors have not initiated negotiation procedures.

They also accused Hyundai Motor of discriminatory treatment between regular and non-regular workers and warned of escalating industrial action, including a potential general strike in July if negotiations do not progress.

The developments highlight ongoing tensions in South Korea’s labor landscape, as unions push for broader accountability from major corporations under the revised legal framework.

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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