A partial strike disrupted operations yesterday at South Korea's largest automaker Hyundai Motor amid concern over a prolonged management vacuum caused by the arrest of its chairman.
The union said a two-hour work stoppage would be staged through to Thursday.
Hyundai officials said the four-day strike action would cost about 130 billion won (US$135 million).
"Our members downed tools for two hours," said a union official at Hyundai Motor's main plant in the southeastern city of Ulsan.
The company has rejected the union's demand for a 9.1 percent pay rise and bigger financial incentives, claiming a stronger won has undermined its earnings which are heavily dependent on exports.
Hyundai, the world's seventh-largest automaker and which controls more than 70 percent of the South Korean car market, has been hit by strikes annually since 1995.
Hyundai Motor was left rudderless on April 28 when chairman Chung Mong-koo was jailed on charges linked to running a political slush fund.
The strike came as a court held a third hearing yesterday for Chung, who has been indicted for embezzling 79.7 billion won and breach of trust.
In a letter to the court on June 15, the business tycoon apologized for approving the slush fund.
At yesterday's hearing, the business tycoon, wearing a blue prison uniform and jogging shoes, apologized again and said: "I repent bitterly for past wrongdoing."
At the same time, he denied charges that he had breached trust by causing millions of dollars of damage to his company.
"I don't know in detail because it was done by working-level officials," he said, prompting a lengthy debate between his lawyer and prosecutors.
Prosecutors have accused him of collecting 103.4 billion won in secret funds to bribe politicians and officials in return for favors for the company. They also suspect he used part of the money to facilitate the illicit transfer of corporate wealth and management control to his son.
Chung's defense team has requested bail, citing his advanced age, health problems and arguing he was not a flight risk.
The court has yet to accept the bail request.
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