The company announced that it will cut all executives' salaries by 20% and review its voluntary retirement program for employees in order to cut costs. It also plans to minimize overseas business travel and implement tighter cost control in operations.
Hyundai Steel's decision shows that the South Korean steel industry is facing increasing challenges. The company had already reduced production at its Pohang plant due to a sluggish domestic market and competition from low-priced steel products from China and Japan.
The US imposition of a 25% tariff on steel imports has also increased the pressure on Hyundai Steel. “Without strong self-rescue measures, it will be extremely difficult for us to improve our financial situation in the face of domestic and global crises,” company officials stated.
Meanwhile, the long-running wage negotiations between Hyundai Steel and the labor union have not been resolved. As partial and full-scale strikes by the union disrupted production, the company halted operations at its cold-rolled steel plant in Dangjin on February 24.
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