South Korea Sputtering Back to Life

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Although Seoul continued to take a conciliatory approach to the worker demands, it has forcefully cracked down on labor-related violence. Last week police rounded up 172 strikers and agitators for allegedly staging unruly protests. During a confrontation with police at Daewoo shipyard, one worker was killed, the first reported fatality since the strikes began.

The Hyundai settlement does not mean the end of the fight. The workers will strike again if wage talks are not concluded by Sept. 1, or if the company does not make a reasonable counteroffer to demands for salary hikes averaging 25%. The Hyundai car could be in short supply no matter what happens. Though assembly lines are running again, labor problems persist among Hyundai Motor's 260 suppliers. Unless those disputes are immediately settled, the auto giant will have only enough car parts for a week's worth of production.