Kia's headquarters in Yangjae, Seoul [Kia]
Kia's headquarters in Yangjae, Seoul [Kia]

Kia announced Tuesday that labor and management reached a tentative agreement on wages and collective bargaining for 2026 without a strike — the sixth consecutive year the automaker has avoided industrial action. The deal was struck at the 12th round of formal negotiations held at Autoland Gwangmyeong, with Chief Executive Song Min-su and union chapter head Kang Seong-ho among those in attendance.

This year's talks were marked by sharp differences between the two sides, including a breakdown in negotiations at one point, but the company said both parties ultimately overcame the difficulties and concluded the process without a work stoppage.

Kia said labor and management found common ground on the need to reward employees who achieved record production and sales last year, and to sustain the company's growth momentum, despite an uncertain environment shaped by the war in the Middle East and tariff barriers imposed by various countries.

The key terms of the tentative agreement include a base pay increase of 100,000 won ($72), a management performance bonus of 300% plus 4 million won, a quality-improvement incentive of 100% plus 4.7 million won, a special bonus of 4 million won to mark Kia's 2026 Autocar Awards win, 47 company shares as a bonus for concluding the 2026 collective bargaining agreement, and a special points award of 500,000 points for achieving record production and sales targets this year. The company said the package reflects the principle that "where there are results, there should be rewards," even amid internal and external challenges.

In addition, Kia's labor and management signed a separate agreement on employment stability through the prevention of serious workplace accidents and the strengthening of future competitiveness. The accord commits both sides to building a safety culture to prevent serious accidents, jointly responding to industrial transformation, and working to ensure job security for employees.

Kia also said it would contribute 4 billion won to a social contribution fund to support community development and assist those in need.

A Kia official said that while even established global automakers in countries such as Germany are struggling, Kia is delivering tangible results — including sales growth — by building a full lineup spanning internal combustion engines, hybrids and electric vehicles. "We will make every effort, as labor and management together, to wrap up this year's wage and bargaining talks as quickly as possible and take another step forward as a global top-tier company," the official said.

A union ratification vote is scheduled for Friday.


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