"Hyundai Motor and Kia to Expand Partner Welfare by Establishing Joint Daycare Center"

Hyundai Motor and Kia Sign Win-Win Cooperation Agreement with Ministry of Employment and Labor for Automotive Industry

Hyundai Motor Company and Kia are preparing various measures to improve the working conditions of employees at 2nd and 3rd tier suppliers, including the establishment of a joint daycare center and the provision of long-term service support payments.

On the 25th, Hyundai Motor Company and Kia announced that they signed the "Automotive Industry Win-Win Cooperation Expansion Agreement" with the Ministry of Employment and Labor at KIA 360 in Gangnam-gu, Seoul. The event was attended by Lee Jeong-sik, Minister of Employment and Labor; Lee Dong-seok, CEO of Hyundai Motor Company; Choi Jun-young, CEO of Kia; Moon Seong-jun, Chairman of the Hyundai Motor Company and Kia Cooperation Association (CEO of Myunghwa Industry); representatives of small and medium-sized suppliers; and Lee Hang-gu, Director of the Korea Automotive Technology Institute, who serves as the chair of the win-win cooperation council.

Through this agreement, Hyundai Motor Company and Kia will implement specialized projects worth approximately 12 billion KRW aimed at improving working conditions such as workforce development, welfare, and industrial safety for 2nd and 3rd tier suppliers.

First, Hyundai Motor Company and Kia will provide long-term service incentive payments to new employees who work for more than two years. This is intended to guarantee stable wages for workers, encourage long-term employment, help alleviate labor shortages at 2nd and 3rd tier suppliers, and create an environment where both companies and employees can coexist harmoniously.

Additionally, they plan to offer job training to young job seekers and support internships and regular employment transitions at 2nd and 3rd tier suppliers to help them take their first steps into society.

Hyundai Motor Company and Kia will also implement customized welfare programs such as improving working environments including offices, restrooms, and lounges at supplier sites, and providing holiday and vacation expenses. A joint daycare center for children of supplier employees will be piloted in areas densely populated with suppliers.

In the field of industrial safety, various supports will be provided, including improvements to aging equipment and hazardous processes, industrial safety education and consulting projects, and subsidies for the introduction of smart safety equipment to prevent industrial accidents. Furthermore, they will collaborate with the "Industrial Safety Win-Win Foundation," the first domestic non-profit industrial safety foundation established by Hyundai Motor Group in 2022, to build safe working environments and enhance safety capabilities at 2nd and 3rd tier suppliers.

Moreover, Hyundai Motor Company and Kia plan to expand the scope of support programs currently implemented for 1st and 2nd tier suppliers, worth 420 billion KRW, to include 3rd tier suppliers. These programs include financial support such as raw material price linkage systems, loan interest and guarantee support, as well as competitiveness enhancement programs like smart factory construction, business diversification consulting, and research and development fund support.

Earlier, after holding the "Joint Declaration Ceremony for Win-Win Cooperation in the Automotive Industry" in November last year, Hyundai Motor Company and Kia formed a win-win cooperation council involving the government, experts, and supplier representatives, and have been exploring ways to enhance the expertise and productivity of suppliers for about five months.

Minister Lee said, "I hope that through this win-win agreement, finished car manufacturers and small and medium-sized suppliers will share goals and visions and cooperate organically so that Korea's automotive industry can vigorously move toward a new future."

CEO Lee said, "I hope you will watch over and pay attention so that our commitment to win-win cooperation in the automotive industry can become not just 'Donghaeng (同行, traveling together)' but 'Donghaeng (同幸, happiness together)' where we can be happy together." CEO Choi added, "We will carefully ensure that supplier employees can dream of their happiness and a bright future in a more comfortable and safe environment."