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As the trend of replacing human labor with robots continues to grow, Hyundai Motor Group has taken a significant step forward. In late 2018, the company announced its plan to introduce wearable robots on the car production line—marking South Korea’s first implementation of such technology in the automotive sector. This move signals a major shift in how manufacturing is being redefined through advanced robotics.
According to BusinessKorea, workers who use these wearable robots can save between 30% and 40% of their physical effort, significantly improving productivity. Hyundai-Kia Automotive Group is now working closely with Hyundai Rotem to develop these devices, with plans to eventually sell industrial robots in the future. The initiative aims to not only enhance worker safety but also boost efficiency across the production floor.
Data from Hyundai shows that without assistance, workers’ efficiency drops to 69% after a full day of work. However, with the help of wearable robots, this number remains stable at around 95%. Initially, the focus will be on robots that support the back and knees of workers, with a planned launch by the end of this year and full commercialization expected within one to two years.
Although wearable robots offer clear benefits like increased efficiency and reduced workplace injuries, they also represent a long-term strategy for factories to reduce reliance on human labor while increasing output. This shift is part of a broader trend toward automation in manufacturing.
Chung Eui-sun, vice chairman of Hyundai Motors, has acknowledged concerns about job losses due to automation. He argues that while some roles may disappear, new opportunities will emerge in fields like software development and programming. However, his comments have only reinforced market perceptions that robots are becoming a permanent fixture in the factory environment.
Hyundai has struggled with rising labor costs over the years. Due to employee strikes, the company has had to compromise on annual salary increases. As revenues declined, labor costs rose to over 15% of revenue—a historic high. This has made reducing personnel expenses a top priority for the company.
According to research from the Korea CXO Institute, Hyundai's labor cost ratio fell slightly from 14.6% in 2014 to 14.3% in 2015. However, it rebounded quickly due to ongoing labor disputes, mandatory wage hikes, and other demands from the union. These factors have contributed to higher labor costs despite declining profits.
In 2017, Hyundai faced challenges in both the Chinese and U.S. markets. At the same time, the union demanded a 58,000 won (about $54) monthly salary increase, leading to a five-day strike. The dispute resulted in a loss of 400 billion won (around $374.6 million) in revenue. Some analysts believe that labor costs could soon reach 16% of Hyundai’s total revenue if current trends continue.
September 25, 2025