The workers are pressing wage demands and opposing the buying up of Daewoo and Ssangyong companies by U.S., German, and Italian auto giants.

On April 6 production at Hyundai, Kia, Daewoo, and Ssangyong Motors ground to a halt in the face of a concerted strike. Workers at Kia and Hyundai have since returned to work. Kia workers are now refusing extra duties and overtime. Employees at Hyundai--the largest south Korean car maker--decided April 15 to suspend their strike, monitor progress on wages, and reconsider what course of action to take by April 19.

After the first week of the walkout, the car companies reported losses of 74,500 cars worth 76.5 billion Won (US$1= 1,110Won). At more than 43 billion Won, Hyundai's loss was the greatest.

The Korea Times opposed the strike, editorializing on April 14 that "the seven-day strike might be successful for the solidarity of auto workers of the four companies... [but] would inevitably frustrate the potential foreign investors who must feel uneasy about the power wielded by hawkish labor unions."

The auto workers oppose the sale of Daewoo Motors and Ssanyong to foreign companies, explaining that mass layoffs will follow. DaimlerChrysler, Fiat, and the U.S. auto giants Ford and General Motors are lined up as potential suitors for Daewoo, whose deficit reached nearly $5.4 billion in June last year. Hyundai is also a contender. However, according to the Korea Times, a report by a major bank has stated "foreign ownership is the most preferred solution."

"The attraction of foreign investment has been a decisive key to the revitalization of the national economy which was forced to the brink of bankruptcy just two and a half years ago," continued the editorial, referring to the economic crisis that began in mid-1997.

On the heels of a glowing report by the International Monetary Fund, which predicted an economic expansion of 7 percent this year, the south Korean stock market suffered its biggest loss ever on April 17. In the wake of the big slide on Wall St. the previous Friday, the Kospi index fell 12 percent. The Korean market has lost nearly a third of its value in dollar terms since last December.  
 
 
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