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South Korea welcomes Hyundai's electric vehicle investment plan

Commitment to build first domestic all-EV plant helps avert possible strike

Hyundai Motor is betting on a future of strong demand for electric vehicles, with plans for new factories in the U.S. and South Korea.   © AFP/Jiji

SEOUL --Hyundai Motor's decision to build a new electric vehicle factory in South Korea as part of a tentative deal with its strike-threatening labor union was welcomed by investors, analysts and local media on Wednesday, as the automaker aims to lead the global EV market.

The South Korean company and its union brought weeks of uncertainty to an end by announcing late Tuesday an agreement had been reached to avoid the potential walkout by autoworkers. In addition to the plan to build the new factory, the company agreed to increase monthly basic wages by 4.3%, or 98,000 won ($75) and to lift bonuses. But it rejected a union demand to extend the retirement age beyond 60.

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