Hyundai gets green light for low-wage, car-making JV
The JV will be the first factory built in South Korea for more than 20 years, but unions are worried the move will push wages down
Seoul — A South Korean city council on Wednesday gave the green light to a revised plan for a low-wage, car-making joint venture (JV) with Hyundai Motor, setting the stage for the construction of the car maker’s first factory at home in more than two decades. The proposed plant in the south-western city of Gwangju is in line with Seoul’s policy to spur job creation, but comes as Hyundai is grappling with excess capacity globally amid sluggish domestic demand, falling US exports and weak China sales. With unemployment rates hitting a 17-year peak in 2018, South Korean President Moon Jae-in has called on the country’s biggest vehicle maker to build a local factory. The liberal government counts Gwangju as its political stronghold. The city council said it aims to sign the deal with Hyundai on Thursday after final negotiations and, according to a city official, Moon is expected to attend the signing ceremony. A preliminary deal for the JV had been reached early last month. It included ...
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