ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

South Korean city battles to run car factory and halve worker pay

Gwangju hopes to create jobs and share the pain with young generation

A worker at South Korean automaker Hyundai on strike in 2012. Union members have won generous pay packages through industrial action, leading critics to see them as pampered.
A worker at South Korean automaker Hyundai on strike in 2012. Union members have won generous pay packages through industrial action, leading critics to see them as pampered.   © Reuters

SEOUL -- A city near the southern tip of South Korea wants to go ahead with a plan to pay autoworkers less than 40% the national average and perhaps keep its population from further declining. The proposal to set up a contract manufacturer is held together by a number of linchpins, one of which is made up of central government funds, the deadline for which is sometime early this month.

The government intends to finalize its fiscal 2019 budget within days and will not include money for infrastructure and other tertiary needs in Gwangju unless all sides agree to the plan.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more