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The SsangYong Motor Strike: How A 77-Day Siege Led To South Korea’s 'Yellow Envelope' Law And A 14-Year Labor Peace

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The SsangYong Motor strike of 2009 is a pivotal, yet often misunderstood, chapter in modern South Korean labor history, representing a brutal standoff between capital and workers that had profound, long-lasting consequences. While the name SsangYong Motor Company is now officially KG Mobility (KGM), the memory of the 77-day siege at the Pyeongtaek plant remains a powerful symbol of the fight against mass layoffs and corporate restructuring. This article, updated in December 2025, explores the intensity of the 2009 dispute, its grim legacy that inspired pop culture and major legislation, and the remarkable journey to a now-stable, cooperative labor-management relationship that has held for over a decade.

The company’s dramatic shift—from being the site of one of the nation's most violent labor confrontations to a model of industrial peace—offers a rare case study in corporate reconciliation. The current stability under KG Mobility is a testament to the fact that even the most deeply scarred relationships can be mended, a turnaround cemented by the recent decision to drop a massive damages lawsuit against the former striking workers. Understanding the SsangYong strike is crucial for grasping the dynamics of South Korean industrial relations and the ongoing debate surrounding worker rights and corporate accountability.

The 77-Day Siege: Inside the 2009 SsangYong Motor Strike

The crisis at SsangYong Motor Company began not in a factory but in a courtroom. In early 2009, the automaker was placed under court-led receivership following severe financial difficulties. The Chinese-owned company, then majority-owned by SAIC Motor, announced a devastating workforce reduction plan: the layoff of 2,646 employees, representing a staggering 36% of the total workforce.

This announcement was the spark that ignited the Korean Metal Workers' Union (KMWU), specifically the SsangYong Motor branch. On May 22, 2009, approximately 1,700 workers began a militant sit-in occupation of the Pyeongtaek plant. The workers saw the layoffs as a betrayal and a direct threat to their livelihoods, transforming the factory floor into a fortified protest site.

The standoff quickly escalated into a siege. For 77 days, the striking workers held the plant, facing intense pressure from the company, police, and even non-striking workers. Union spokesperson Lee Chang-kun and union leader Han Sang-gyun became the public faces of a struggle that drew national and international attention.

The final days of the strike were marked by brutal suppression. Police and security forces launched a massive crackdown, utilizing helicopters, water cannons, and tear gas, a display of force that shocked the nation. The workers, defending themselves with makeshift weapons, were eventually overcome. The strike officially ended on August 5, 2009, in a devastating defeat for the union.

The aftermath was grim. While a negotiated settlement allowed some workers to return, 94 workers were jailed, and 230 were prosecuted. The company filed a massive civil suit, seeking 4.7 billion won in compensation for damages incurred during the occupation. More tragically, the psychological and financial toll on the laid-off workers led to a heartbreaking statistic: over 30 sacked workers and their family members died prematurely due to stress, illness, and suicide in the years that followed.

From Damages to Diplomacy: The KG Mobility Turnaround

The legacy of the 2009 strike cast a long shadow over the company for more than a decade. However, the period following the strike also marked the beginning of a deliberate, long-term effort to rebuild the labor-management relationship.

In 2010, the company, still operating as SsangYong Motor, began a new chapter in its labor relations. The focus shifted from confrontation to mutual trust and cooperation. This commitment has been remarkably successful, leading to a period of unprecedented industrial peace. Since 2010, the company has successfully conducted wage negotiations without a single strike for 14 consecutive years.

The most significant step toward true reconciliation came in the 2020s, following the company's acquisition by the KG Group and its subsequent rebranding as KG Mobility (KGM) in 2023. KGM, under its new leadership, sought to finally close the painful chapter of 2009.

In a landmark decision, KG Mobility announced that it would drop the 4 billion won damages award against the former SsangYong union members. This move was a powerful gesture of goodwill, effectively ending the 16-year legal battle that had financially crippled many of the workers and their families. The company stated that stable labor-management relations are paramount to protecting jobs and increasing sales volume, solidifying a "win-win labor-management culture model."

This strategic move not only cleared the debt for the workers but also positioned KG Mobility as a company committed to social responsibility and a future built on mutual respect. The current stability has allowed KGM to focus on its transition into a leading future mobility company, developing new models and technologies with a unified and cooperative workforce.

The Legacy of the Strike: The 'Yellow Envelope' and 'Squid Game' Connection

The 2009 SsangYong Motor strike transcended the factory walls, becoming a catalyst for both a major legislative debate and a surprising inspiration for global pop culture.

The Yellow Envelope Bill

The massive damages lawsuit filed by SsangYong against its striking workers was the direct trigger for a major legislative push in South Korea, resulting in the nickname "The Yellow Envelope Bill." The name originates from a citizen who, moved by the plight of the workers, sent a small cash donation in a yellow envelope to help pay the legal costs.

Officially an amendment to the Labor Union Act, the Yellow Envelope Bill aims to prevent employers from filing excessive damage claims and injunctions against unions for losses incurred during legitimate strikes. The bill seeks to limit the scope of liability for union members, particularly by preventing companies from claiming damages from individuals for actions taken by the union as a whole.

The controversial bill has been a flashpoint in South Korean politics, with pro-labor parties arguing it protects workers' constitutional right to strike, and business groups warning it will lead to an increase in illegal strikes. The debate remains active, with the bill being a constant topic of political discussion and updates, including recent parliamentary subcommittee movements in July 2024. The SsangYong strike, therefore, remains a living part of the country's legal and political landscape.

The 'Squid Game' Inspiration

In a surprising connection, the brutal reality of the SsangYong strike was cited as a direct inspiration for one of the most popular global television series of all time: 'Squid Game.' The series’ creator, Hwang Dong-hyuk, confirmed that the flashbacks involving the show's main character, Seong Gi-hun, and his involvement in a violent labor dispute were modeled on the events at the SsangYong Motor plant.

The visual and emotional intensity of the factory siege—the barricades, the police crackdown, and the desperate struggle of the workers—was translated into the fictional world of the show. This connection brought the historical trauma of the SsangYong workers to a massive international audience, highlighting the deep-seated social and economic anxieties that were central to the strike.

The journey of SsangYong Motor—now KG Mobility—is a powerful narrative of conflict, tragedy, and eventual reconciliation. The 2009 strike, while a dark moment, has ultimately led to a more robust national discussion on labor rights, a landmark piece of legislation, and a new era of industrial peace at the Pyeongtaek plant. The company's decision to drop the damages claim is a crucial step in healing the wounds of the past, allowing the former SsangYong workers and the new KG Mobility to move forward together.

The SsangYong Motor Strike: How a 77-Day Siege Led to South Korea’s 'Yellow Envelope' Law and a 14-Year Labor Peace
ssangyong motor strike.
ssangyong motor strike.

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