South Korea’s biggest carmaker, Hyundai Motor Company climbed to a more than 10-month high in Seoul trading after its union agreed to resume wage talks.
The automaker, based in Seoul, and its union will hold talks today and tomorrow to agree on wages for this year, according to a statement on the union’s website. The announcement comes after Hyundai’s President Yoon Gap Han suggested holding three rounds of discussions each week to expedite the negotiations.
After that, Hyundai rose today as much as 1.5% to 244,000 won, heading for the highest close since October 4. They were trading up 1% at 243,000 won as of 1:11 p.m. in Seoul. The benchmark Kospi Index also gained 1.5%.
The union has been staging partial strikes since August 20, demanding higher wages and better compensation. Hyundai estimates the walkouts have cost it 486.8 billion won ($439 million) in lost production, or 23,748 vehicles, the company said on August 28.
Stalled wage talks at Hyundai has caused a production shortfall of more than 1.2 million vehicles and 13.3 trillion won in lost sales since the union’s 1987 formation, according to company data.