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As the trend of replacing human labor with robots continues to grow, the Hyundai Motor Group has taken a significant step forward. In late 2018, the company announced its plan to introduce wearable robots into its car production lines—a first for South Korea in the automotive industry. This development signals a major shift in how manufacturing is being redefined.
According to BusinessKorea, workers who use these wearable robots can save between 30% and 40% of their physical effort. The Hyundai-Kia Automotive Group is now working closely with Hyundai Rotem on research and development, with plans to eventually sell industrial robots in the future. These wearable devices are designed to support workers' backs and knees, aiming to reduce injuries and improve overall productivity.
Hyundai's data shows that when workers work from morning to afternoon, their efficiency drops to 69%. However, with the help of wearable robots, efficiency remains at 95%. The company plans to launch these robots by the end of this year, with commercialization expected within one to two years.
While wearable robots offer clear benefits such as increased efficiency and reduced workplace injuries, they also represent a long-term strategy for factories to cut down on manpower while boosting production capacity. This transition could lead to a more automated and efficient manufacturing process.
Chung Eui-sun, vice chairman of Hyundai Motors, acknowledged that some people might worry automation would reduce job opportunities. However, he argued that it would create new jobs in areas like software development and programming. Despite his reassurances, many market observers believe that robots will soon become a permanent part of the factory floor.
In recent years, Hyundai Motors has faced challenges with rising labor costs. 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—its highest level ever. Reducing these costs has now become a top priority for the company.
Research firm Korea CXO Institute reported that in 2015, labor costs accounted for 14.3% of Hyundai’s revenue, slightly down from 14.6% in 2014. However, the cost rebounded quickly due to ongoing strikes and mandatory salary hikes, which ignored the company’s declining profits. These factors have contributed to high labor expenses.
In 2017, Hyundai faced sales difficulties in both China and the U.S. Meanwhile, the union demanded a 58,000 won (about $54) monthly salary increase, leading to a five-day strike. The union also pushed for a 200,000 won (around $187) gift certificate for 200,000 employees, resulting in a loss of 400 billion won ($374.6 million) in revenue. Some analysts believe that labor costs could soon reach 16% of Hyundai’s total revenue.
September 25, 2025