Considering Voluntary Retirement for All Employees... "Extraordinary Measures for Survival"
U.S. Steel Tariffs, Influx of Imported Steel, and Union Risks Overlap
Hyundai Steel, which is facing a severe management crisis due to the impact of U.S. steel tariffs and other factors, has entered an emergency management system to overcome the crisis.
This move by Hyundai Steel is an extraordinary measure based on the judgment that management improvement will not be easy without strong self-rescue efforts amid the recent serious crisis both domestically and internationally.
Accordingly, Hyundai Steel has decided to cut all executives' salaries by 20% and will also implement cost-saving measures such as minimizing overseas business trips.
The company is also considering accepting voluntary retirement applications from all employees and plans to pursue extreme cost-saving measures in various ways.
Due to the recent downturn in the domestic construction market, Hyundai Steel has reduced operations at its Pohang Plant No. 2 and is accepting applications for voluntary retirement from technical staff at the Pohang plant and for transfers to Dangjin Steelworks and Incheon plant until the 14th.
In addition, the market share of low-priced steel products from China and Japan has been encroaching on the domestic market, so the company is continuing its efforts to survive by filing anti-dumping complaints against plate and hot-rolled products.
Meanwhile, U.S. President Trump decided to impose a 25% tariff on Korean steel products as of the 12th local time, which is expected to sharply weaken the export competitiveness of Korean steel companies.
Amidst this crisis, Hyundai Steel is also experiencing difficulties in wage negotiations with the labor union, which have been ongoing since September last year.
The company, despite suffering a net loss of 65 billion KRW in 2024, proposed a performance bonus of an average of 26.5 million KRW per person (450% + 10 million KRW), but the union rejected the proposal and has continued to demand additional bonuses through strikes.
Hyundai Steel labor and management resumed negotiations on the 13th, but failed to reach an agreement. If the labor-management conflict continues, it is feared that there will inevitably be negative impacts on the domestic industrial sector as well.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
