Industrials - Korea: No strikes in Defense & Nuclear

Research evidence excerpt

Industrials - Korea: No strikes in Defense & Nuclear

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Industrials - Korea

No strikes in Defense & Nuclear

Industry Overview

Korea Defense: Defensive against union strike woes 18 May 2026

Investors have recently raised cautions associated with potential production disruptions Equity

and 2H26 earnings risks arising from 1) labor union strike woes spreading out to large Republic Of Korea

conglomerates in South Korea, and 2) higher profit-sharing demand (bonus requirement) Industrials

from labor union. HD Hyundai Heavy workers demanded for net profit-sharing ratio of

KJ Hwang >>

30% while union of MOVIENT (in charge of auto parts logistics of Hyundai Motor Group) Research Analyst

announced plans to strike ahead of wage negotiation season (Jun-Aug’26). In contrast, Merrill Lynch (Seoul) +82 2 3707 0460

there has been no indication of union strike from Korean defense exporters YTD. kj.hwang@bofa.com

Constitution Article 33 prohibits Defense union strike TaekyoungResearch AnalystHa >>

In South Korea, union strike in Defense sector is prohibited by the Constitution (Article Merrill Lynch (Seoul)

33, Paragraph 3) which restricts/denies the collective actions of workers employed by taekyoung.ha@bofa.com

major defense industries designated by law. According to the Trade Union and Labor

Relations Adjustment Act, ‘Specific Prohibition Clause’ (Article 41) states that personnel

who are employed by a major defense industry designated by the Defense Acquisition

Program Act and are engaged in work related to electricity, water supply, or the

production of primary defense material shall not conduct industrial actions.

Doosan/Hanwha at the top of rising foreign ownership

In 2025, Hanwha Aerospace’s turnover rates of inventory assets and receivables edged