Hyundai Motor and Kia All Employees to Receive 5.8 Million KRW Performance Bonus

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Company has decided to distribute a performance bonus of 4 million KRW and 10 shares of stock to all employees. This is to encourage the achievement of last year's record-breaking performance and to motivate employees to meet this year's business goals.

On the 17th, Hyundai Motor announced, "In accordance with the principle that 'reward follows performance,' we have decided to pay a special performance bonus." The bonus will be given to virtually all employees who have worked for more than two months as of the payment date, which is next month on the 2nd. In addition, contract workers and in-house partner company employees will also receive performance bonuses based on separate criteria.

Hyundai Motor Company and Kia Headquarters in Yangjae-dong, Seoul

The company stated, "Taking this special performance bonus payment as an opportunity, we will continue to improve our system so that the company and employees can grow together based on trust in 'reward for performance,' and so that each employee can take pride in their work."

Kia also decided on the same day to pay all employees 4 million KRW and 24 shares of stock. As of that day, 10 shares of Hyundai Motor stock or 24 shares of Kia stock are worth about 1.8 million KRW. Considering that Hyundai Motor has about 70,000 domestic employees and Kia has about 35,000 employees, the companies will spend a total of approximately 600 billion KRW.

Previously, the two companies distributed 4 million KRW to all employees as a consolation payment last year. At that time, the payment was also made to non-regular workers. However, unlike other large companies such as Samsung and SK, it was given as a special consolation payment rather than a performance bonus. Recently, demands for performance bonuses have increased, especially among younger employees, but it is reported that these companies do not have grounds or calculation standards for separate performance bonuses. Accordingly, around the end of 2021, some non-union employees were selected to receive a special reward of 5 million KRW. The labor union opposed this, calling it a 'differentiated performance bonus.'

Hyundai Motor Group Chairman Chung Eui-sun is revealing the New Year's management strategy and direction together with the heads of affiliates at the New Year's meeting held on the 3rd at Hyundai-Kia Namyang Research Center in Hwaseong, Gyeonggi Province. From the left, Song Chang-hyun, Head of TasS Division and President in charge of Vehicle SW, Park Jung-guk, President of R&D Division, Chairman Chung Eui-sun, Jang Jae-hoon, President of Hyundai Motor Company, and Song Ho-sung, President of Kia.
Hwaseong ? Photo by Kim Hyun-min kimhyun81@

On the same day, Hyundai Motor CEO Jang Jae-hoon said in an email to employees, "With differentiated product competitiveness, we received global awards including the '2022 World Car of the Year (Ioniq 5)' and ranked first in J.D. Power for two consecutive years, gaining recognition for quality from customers and the market," adding, "We have decided to pay a special performance bonus to all employees who have devoted themselves to achieving the highest performance."

Kia CEO Song Ho-sung also mentioned last year's achievements, saying, "This brilliant accomplishment was possible because all workers did their best in their respective roles and worked with one heart and mind. We want to share this precious fruit by paying a special performance bonus as a token of gratitude for your hard work and dedication."

Both CEOs Jang and Song noted that the domestic and international economic situation this year is challenging and urged employees to strive to achieve their goals.