A view of Hyundai Steel’s Incheon plant (Image courtesy of Yonhap)
SEOUL, Aug. 14 (Korea Bizwire) — Hyundai Steel has withdrawn a 4.61 billion won ($3.4 million) damages lawsuit against members of its irregular workers’ union, who staged a strike in 2021.
The move comes as the ruling Democratic Party pushes to pass the so-called “Yellow Envelope Law” this month, aimed at limiting companies’ ability to seek compensation from unions and workers for losses incurred during industrial action.
The Hyundai Steel branch of the Korean Metal Workers’ Union in South Chungcheong Province announced the development on August 14, attributing the outcome to meetings with Democratic Party lawmakers, arguments against the alleged illegality of the dispatch arrangements, and preparations for a parliamentary audit. The company confirmed the withdrawal.
The dispute dates back to 2021, when subcontracted workers demanding direct employment occupied the control center at Hyundai Steel’s Dangjin plant for more than 50 days. The company had proposed creating a subsidiary to resolve illegal dispatch issues, but the plan was rejected by workers.
Hyundai Steel responded by filing two lawsuits: a first claim of about 20 billion won against 180 workers, and a second claim of 4.61 billion won against 461 workers — the latter now dropped.
In the first case, a district court in June ordered the union to pay 590 million won in damages, partially siding with the company. The union has appealed, and the case is now before the appellate court. The union said it would provide updates on the larger suit as details emerge.
Ashley Song (ashley@koreabizwire.com)
