Kia Motors 'Ordinary Wage Lawsuit'... Final Verdict Today

Dismissal of 'Principle of Good Faith' Claims in 1st and 2nd Trials... Inclusion of Bonuses in Ordinary Wages Also Key

[Asia Economy Reporter Baek Kyunghwan] The final verdict on the Kia Motors ordinary wage lawsuit, involving an amount in the trillions of won, is about to be delivered. The key issue is whether to recognize the 'principle of good faith and fair dealing,' which limits the refund amount based on the company's business condition.

The Supreme Court's 1st Division (Presiding Justice Kim Seonsu) will hold a ruling session at 10 a.m. on the 20th for the appeal trial of a wage lawsuit filed by 3,532 workers, including Mr. Ko, against Kia Motors.

In 2011, 27,451 Kia workers filed a lawsuit demanding that various allowances, including an annual regular bonus of 700%, be included in the ordinary wage to calculate allowances and severance pay. The claimed amount reached 658.8 billion won in principal. Including delayed interest, it exceeded 1 trillion won.

The core issue of the case is whether the principle of good faith and fair dealing regarding ordinary wages can be applied, which states that "even if regular bonuses, etc., qualify as ordinary wages, additional statutory allowances do not have to be paid if it causes business difficulties for the company."

Previously, the first trial recognized half of the total claimed amount, 312.6 billion won. Including delayed interest, it ordered payment of 422.3 billion won. Regarding the principle of good faith and fair dealing, the court stated, "It is inappropriate to argue that paying wages that workers rightfully deserved only now causes significant economic threats by focusing solely on the additional costs incurred."

The appellate court held the same view. The court judged, "Even considering the scale of unpaid statutory allowances estimated by Kia Motors, it is difficult to conclude that the company faces serious business difficulties or that its existence is threatened, given the net profit, sales, and available funds."

In the legal community, similar lawsuits surrounding ordinary wages are lined up, so this ruling is expected to have a significant impact on the entire industry. The Hyundai Heavy Industries ordinary wage case is a representative example, and Kumho Tire, Mando, Hyundai Mipo Dockyard, and Doosan Motrol are also awaiting the Supreme Court's judgment.

This content was produced with the assistance of AI translation services.