안녕하세요. 노마드케빈입니다.
Hello, this is Nomad Kevin.
The news coming from the Korean manufacturing scene is as chilling as the cold December wind. Have you heard of the term 'King-sanjik' (King + Production job)? It referred to the production jobs at Hyundai Motor, known for their $100,000+ salaries, guaranteed tenure, and even controversies over hereditary hiring. It was truly the "God-tier" of blue-collar jobs.
However, that fortress, which seemed like it would last forever, is now crumbling. Even current employees are screaming, "Our company has no future," and "We are 50 years behind."
Today, we will dig deep into the 'Collapse of Production Jobs' happening inside Hyundai Motor, the heart of Korean manufacturing, and the three major fears hidden behind it.
### 1. The First Fear: "A 50-Year Tech Gap with Tesla"
Recently, a question on an anonymous employee community heated up the board:
"What is the gap in autonomous driving technology between Korea and Tesla?"
Many expected the answer to be "3 to 5 years" since Korea is known as a fast follower. However, the answer from a current employee at the Hyundai R&D Center was shocking.
"It is 50 years."
This was not a typo. The essence of the automotive industry has completely shifted from 'Machinery (Hardware)' to 'Software and Data'.
The Data Flywheel: Tesla is absorbing real-time data from roads worldwide to evolve its AI. The leader keeps getting smarter, and the gap widens exponentially.
The Nokia Nightmare: Nokia made sturdy phones but failed to read the shift to smartphones. This nightmare is now haunting Hyundai's elite engineers.
### 2. The Second Fear: 'Legal Risks' Choking the Company
While struggling to close the tech gap, the domestic business environment is facing the risk of the 'Yellow Envelope Law'. Intended to protect workers, it has opened a 'Pandora's Box' for management.
Expanded Definition of Employer: Subcontractor unions can now hold the principal employer (Hyundai Motor) directly responsible.
Expanded Scope of Strikes: Strikes can now be legally held not just for wage negotiations, but also for managerial decisions like factory relocations or new technology implementation.
Restriction on Damages: Even if an illegal strike stops the factory and causes billions in losses, the company cannot claim damages unless they prove the specific liability of each individual ringleader.
In fact, right after the law passed, temporary workers at Hyundai Steel filed a lawsuit against Chairman Euisun Chung. This is being read as a grim warning signal to businesses: "Do not expand your business in Korea."
### 3. The Third Fear: The Great Escape of Capital (Goodbye Ulsan)
Conflicts with militant unions, low productivity, and legal risks.
In the end, capital has made a cold-hearted choice: Escape to overseas.
Hyundai Motor is currently investing 11 trillion KRW to build the 'Metaplant America' in Georgia, USA. The reason is simple.
Overwhelming Productivity: The productivity of the Ulsan plant is among the lowest globally, but the new US plant will be driven by robots and AI, boasting overwhelming efficiency.
Risk Diversification: Even if the Korean plant stops due to strikes, the company can survive if the US plant runs 24/7.
Even if the headquarters remains in Korea, the 'hands and feet' that actually earn money and make products are leaving. This is the beginning of industrial hollowing out. Korea might be left with only the title of 'Aristocratic Union' and empty factories with no work.
### 4. Nomad Kevin’s Perspective: Facing the Tsunami of Technology
Even Volkswagen, the pride of Germany, is considering closing domestic factories for the first time in its 87-year history. Volkswagen's today could be Hyundai's future in 3, or at most 5 years.
Just as carriage drivers protesting 100 years ago couldn't stop the advent of automobiles, the tsunami of technology called AI and Robots is an irresistible flow.
Unions must let go of vested interests and become partners in productivity improvement.
Companies must share the fruits of success fairly and create a 'One Team' spirit.
The Government needs to worry about a social safety net for those falling behind, rather than engaging in consuming legal battles.
The 'Collapse of Production Jobs' is not just about job losses. It is a powerful warning that the entire Korean economy could be shaken. In this crisis, what choice should we make?
This has been Nomad Kevin, reading the flow of the economy.
I will be back with more sharp insights next time.
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