Hyundai Steel imposed a workplace lockout at its cold rolled steel plant in Dangjin, South Chungcheong Province, on Feb. 24. The facility generates around 4 trillion won ($2.8 billion) in annual sales. The lockout comes in response to ongoing “guerrilla strikes” by the Hyundai Steel Dangjin Hysco branch of the Korean Metal Workers' Union under the Korean Confederation of Trade Unions. The labor union claims that the performance bonuses of about 26 million won ($18,200) per person offered by management are insufficient, demanding bonuses comparable to those received by workers at Hyundai Motor Company, the group’s flagship affiliate.
Determining that normal plant operations were no longer feasible, the company took the necessary legal step of implementing a lockout. This marks the first lockout in the company’s history since its founding in 1953, and the first major workplace lockout in South Korea since auto parts maker Mando’s case in 2012.
The steel industry is already struggling with an influx of low-cost Chinese steel and weakening demand from key sectors like construction. Now, it faces the added challenge of potential U.S. tariff barriers under a second Trump administration. In response, Hyundai Steel is exploring the construction of a steel plant in the U.S. worth up to 10 trillion won. However, domestically, it is being forced to shut down a key facility. Meanwhile, Japan’s Nippon Steel is taking an aggressive stance, pledging additional investments beyond its 22 trillion won acquisition of U.S. Steel. In the steel industry, there are concerns that “the future of investment is crucial for survival, and internal conflicts will only result in benefiting competitors.”
The Dangjin cold-rolled steel plant is a key facility, contributing 17% of Hyundai Steel’s total revenue last year. It produces high-quality steel sheets essential for Hyundai vehicles. However, this year, the plant has experienced four production disruptions due to strikes. The union, which has been in conflict with management over the size of performance bonuses, has deliberately targeted this facility. Labor laws prohibit strikes in operations involving molten metal, such as blast furnaces and steelmaking, making the cold-rolled steel plant the union’s most effective leverage point and the company’s most vulnerable site.
The Dangjin Hysco branch of the metal union staged a 24-hour general strike on Jan. 21, followed by a partial strike at the pickling line/tandem cold mill (PL/TCM) facility, which removes surface impurities from cold-rolled products, on Feb. 1. Another full-scale strike took place on Feb. 11, and since Feb. 20, partial strikes have resumed at the PL/TCM facility.
In response, Hyundai Steel enforced the lockout. The company complied with legal procedures by notifying local authorities and the labor commission. If the union seeks an injunction to lift the lockout, the court will determine its legality. An industry source noted, “This is effectively the strongest legal measure a company can take.”
