Global Biz

Hyundai announces 2.21m share-repurchase plan

(Xinhua)
Updated: 2009-12-28 18:49

SEOUL: South Korea's largest automaker Hyundai Motor Co. said Monday it plans to repurchase around 2.21 million shares of its stock in order to pay its workers following a wage deal settled last week.

The amount of buyback is to hover around 268.4 billion won (US $230 million), the company said.

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"The move comes as the company decided to give out a bonus for workers as they agreed on a strike-free wage deal, for the first time in 15 years," an official at the company was quoted as saying by local media.

Last week, the 45,000-member union of Hyundai Motor agreed on a wage deal without going into a strike, which called for a basic pay frozen in return for bonuses equivalent to three months' basic pay and 40 shares of Hyundai Motor.

Shares of Hyundai Motor were trading at 120,000 won (US $102.6) on the Seoul bourse at the close, down 0.8 percent from the last close.