- विज्ञापन -
Seoul: Hyundai Steel announced on Friday that it has entered emergency management mode in response to increasing challenges, including the recent U.S. steel tariffs and ongoing labor disputes with unionized workers.
The company revealed that all executives will take a 20 percent pay cut starting Thursday and that it is considering a voluntary retirement program for its employees. Additionally, Hyundai Steel plans to minimize overseas business trips and implement drastic cost-cutting measures across its operations, according to Yonhap news agency.
This decision reflects the growing difficulties facing South Korea’s second-largest steelmaker by sales. Hyundai Steel has already reduced operations at its Pohang plant due to a downturn in the domestic construction sector and is also facing competition from low-priced steel imports from China and Japan, which have taken a toll on its domestic market share.
The company’s situation worsened following U.S. President Donald Trump’s imposition of a 25 percent tariff on steel imports, including those from South Korea, which took effect this week.
Moreover, Hyundai Steel has been involved in prolonged wage negotiations with its labor union since September, resulting in multiple strikes that have disrupted production.
The company acknowledged that, without strong self-rescue measures, it would be extremely difficult to improve its financial situation amid both domestic and global challenges.
In a separate announcement, Hyundai Motor Group reported earning the most awards in an annual crash safety evaluation by the U.S. Insurance Institute for Highway Safety (IIHS), with five Hyundai models, four Genesis models, and two Kia models receiving the Top Safety Pick+ (TSP+) awards. The Genesis GV90 also earned a TSP award. Notably, the Tucson, GV70, and GV80 have won TSP+ ratings for five consecutive years, starting in 2021.
