Unveiling the Truth: The Harsh Reality for Women in Hyundai Motor and South Korea's Workplace

When Hwang Ji-sun, who is now 52 years old, initially joined the assembly line at Hyundai, a South Korean car manufacturer, 22 years ago, women in similar positions faced numerous challenges. Hwang remembers a scarcity of restroom facilities for female employees and how female technicians were paid less than their male counterparts who were permanent staff, as they were only able to be employed as contractors through staffing agencies.

Hyundai had recently made history by directly hiring female factory workers in South Korea, marking the first time since its establishment in 1967, as reported by the Korea Metal Workers Union. In July, the company successfully recruited six women technicians. This achievement was particularly significant for Hwang, who herself became a staff employee only six years ago, perceiving it as a hard-earned and long overdue victory.

She told CNN that it seemed as though the company had made these decisions in response to social pressure and a desire to highlight their commitment to hiring practices this time. Unions and activist groups had long been urging the auto giant to address the lack of inclusion at their predominantly male sites.

The hirings have ignited a broader conversation regarding the wage inequality between genders in South Korea, which holds the highest wage gap among all OECD nations.

Despite its status as one of the most developed economies globally, women in the country continue to face unequal opportunities compared to men. They are seldom seen in leadership positions or within the industrial sector.

Jung Sungmi, a research fellow at the Korean Women's Development Institute, noted that Hyundai Motors' case reflects the lingering practice in Korean society of categorizing jobs based on gender. She emphasized the cultural belief that certain jobs should be performed by men. Although Hyundai's recent action may be primarily symbolic at present, Sungmi saw it as a positive indication that could potentially spark a shift towards breaking away from traditional gender roles in the workplace.

A fresh start

Upon joining Hyundai in Ulsan, a coastal city, Hwang embarked on a new beginning, leaving behind her role at a shoe factory. As she began her journey at the carmaker, her initial assignment was straightforward yet important: to meticulously apply black tape to door frames.

As an independent worker, Hwang stated that her monthly income, including overtime pay, ranged from 1.4 to 1.5 million Korean won ($1,000 to $1,100). This amount was considerably lower than the approximately 2 million Korean won ($1,500) earned by male full-time employees.

A Novant Health Career Fair at NC Works in Wilmington, North Carolina, US, on Thursday, April 20, 2023.

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The number of women in the workforce has reached its highest ever.

In 2012, the Supreme Court declared Hyundai's practice of excluding contract production workers, regardless of their gender, from its staff as illegal. This ruling enabled Hwang and other individuals to transition into full-time employment.

Five years later, after extensive negotiations between labor unions and management, Hwang finally received the official promotion. Today, she proudly states that full-time female workers are now earning equal pay to their male counterparts. Furthermore, her facility has expanded its amenities, including more bathrooms and even showers for women. Notably, the number of women employed at her factory has significantly increased, now accounting for approximately 90 out of the total 3,600 workers.

Hyundai has stated to CNN that it has employed female engineers in its workforce this year, although it has chosen not to disclose further information due to company policy. The company has also refrained from confirming the number of women employed at its various factories worldwide, including those in the United States, Turkey, and India.

Hyundai introduces its new 'Stargazer X' model during an auto show inIndonesia in August.

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According to 2022 data from the US Bureau of Labor Statistics, approximately 28% of auto workers in the United States are female. In South Korea's heavy industry sectors, specifically the automobile industry, women comprise around 9% to 10% of the workforce, as per Affirmative Action, a foundation under the country's Ministry of Employment and Labor.

A wider problem

Although there have been some improvements, South Korea continues to face significant challenges related to gender-based exclusion and low wages, according to researchers. On average, women in the country earn one-third less than their male counterparts, as indicated by data from the OECD. In comparison, the gender pay gap in the United States stands at 17%.

The researchers at the Peterson Institute for International Economics (PIIE) observed a persisting trend in South Korea, even though the country has a higher-than-average level of female tertiary education, according to a report published in 2022.

A no-kids-allowed sign on the door of a cafe in Seoul, South Korea on May 16, 2023.

Woohae Cho/The New York Times/Redux

In a country boasting the world's lowest fertility rate, concerns arise regarding the logic behind the establishment of 'no-kids zones'. Furthermore, they noted that the country's labor force participation rate is 20 percentage points lower for women compared to men, a gap wider than the average observed in high-income countries.

South Korea's fertility rate plummeted to a meager 0.78, the lowest in any advanced economy nation, exacerbating the country's economic prospects.

PIIE researchers have indicated that in South Korea, the correlation between reduced rates of female employment and low fertility is indicative of the inherent characteristics of traditional work practices. This leads to a challenging dilemma for women, as they are compelled to make a difficult choice between their professional careers and their familial responsibilities, thereby exerting immense pressure on them to prioritize one over the other.

An attendee fills out job applications at a Novant Health Career Fair at NC Works in Wilmington, North Carolina, US, on Thursday, April 20, 2023.

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Job seekers want record-high wagesand men expect $25,000 more than women do

Data cited by PIIE shows that married women, particularly those with children, are unlikely to be in work.

"According to the researchers, women who are not married and do not have children are equally likely to be employed as men," stated the researchers.

Gita Gopinath, the first deputy managing director of the International Monetary Fund (IMF), has suggested that South Korea should implement new strategies to support female participation in the workforce.

Improving affordability of childcare, reducing working hours, and implementing flexible arrangements are crucial, as stated during a South Korean forum last September.

"In order to counteract the decline in Korea's labor force caused by rapid aging and low birth rates, enhancing female labor force participation is of utmost importance to stimulate economic growth."

Calls for change

Part of the problem, according to activists, is that businesses arent transparent about how women are treated.

Public institutions are obligated by law to reveal comprehensive data on gender ratios, but private sector employees do not have the same obligation, as stated by unions. During a press conference held in March, numerous worker and activist groups urged companies to be more transparent regarding their recruitment strategies.

Roh Helena, manager of the Korean Women Workers Association's solidarity movement, mentioned her repeated attempts to obtain information from Hyundai Motor regarding the annual recruitment figures for women. Despite her efforts, she did not receive any response from the company.

Pedestrians in downtown Seoul.

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Hyundai Motor's recently released annual report for 2022 reveals that the proportion of female executives, managers, and engineers combined is only 6.4%. Moreover, on its 12-member board, there are only two female directors.

According to a March statement from local labor unions, there was a notable disparity in public sector figures. Between 2018 and 2022, 18,000 additional men compared to women were successful in securing interviews across 350 public sector employers in the country.

Hwang emphasizes that in a culturally conservative society such as South Korea, there is still a significant need for further efforts to alter the prevailing views regarding women in male-dominated professions. She points out that the common perception is that forklift operators are typically male, and she strongly believes in the importance of showcasing that women are equally capable in such roles.

Kim Sooyeon and Chris Isidore contributed to this report.