Gwangju Global Motors (GGM), a joint venture between Hyundai Motor Co. and the Gwangju Metropolitan Government, is aiming to double its annual output to 100,000 units. A labor dispute, however, threatens to derail its plans.

As the exclusive producer of Hyundai’s Casper mini-SUV, GGM is emerging as a core part of South Korea’s compact EV strategy, particularly with the addition of the new electric Casper model.

Since its launch in 2021, GGM has operated under a unique labor-management agreement that prohibits union activity until cumulative production reaches 350,000 units—a milestone projected for 2027.

However, a recently formed union began partial and full strikes earlier this year, raising concerns among the company’s 37 investors, including Hyundai, the city of Gwangju, and financial institutions that collectively invested 230 billion won ($156.2 million).

Maeil Business Newspaper visited the plant, located in the Bitgreen Industrial Complex in Gwangju, on March 25.

The facility appeared busy preparing 87 Casper EVs for their first shipment to Japan.

A sign marked “Inspection Area for Japan-bound Vehicles” stood behind the final inspection area.

Workers, mostly in their twenties and early thirties, focused intently on their tasks—an age demographic that sets the GGM factory apart from Hyundai’s Ulsan plant, where workers tend to be older.

Over 90 percent of the workforce comes from the Gwangju and South Jeolla region, with 83 percent in their twenties or thirties.

The youthful workforce has translated into high productivity.

There were no signs of idle workers or filled smoking areas, and company officials noted that even during a full-day strike on February 18, the factory maintained a 94 percent operating rate.

During partial strikes, the rate stayed at 100 percent. At the time of the March 25 visit, only one worker was seen wearing a union vest.

GGM currently operates a 50,000-unit production system and has been in negotiations with Hyundai to secure enough volume to support a 100,000-unit, two-shift structure.

But those talks have stalled since the strike began. Without new orders, the factory is unable to operate two shifts and shuts down by 4 p.m. on weekdays, with no weekend or holiday work.

Hyundai, under the terms of the original agreement, also has the option to withdraw its outsourced production contracts with GGM altogether.

The conflict stems from the company’s foundational agreement, which permits only a labor-management council with no right to strike until production reaches the 350,000-unit threshold.

Despite this, two in-house unions formed last year and were later unified under the Korean Metal Workers’ Union.

The labor action began after a mediation request last December, prompting concern among shareholders—particularly financial institutions that hold a 28.7 percent stake and have formally requested an explanation.

Despite the turmoil, industry experts believe GGM has significant potential for expansion once labor tensions ease.

The factory is equipped to produce a broad range of vehicles beyond the Casper, including popular small and mid-size SUVs like the Sportage and Santa Fe, for both domestic and North American markets.

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