The 45,000-strong Hyundai union laid down its tools for two hours on Tuesday, and will stop work for four hours every day until Friday, union officials said.
Hopes for a breakthrough were raised in last-minute negotiations earlier in the day after Hyundai's management sweetened its pay offer, but it failed to win concessions from most of the senior union members.
"At this point, the talks aren't proceeding very positively," said a union official at Ulsan, an industrial city 400 kilometers southeast of Seoul where Hyundai has a major factory.
Hyundai originally offered to increase its basic monthly salary by 75,000 won (US$72) with bonus payments equivalent to four months' pay. On Monday, Hyundai delivered a revised offer to raise its basic salary by 82,000 won with bonuses equivalent to five months' salary.
Hyundai's union has yet to present a counter proposal, according to the union official.
Another sticking point is the union's demand for a seat in the company's nine-member board as an outside director to participate in management.
The union has called for Hyundai to invest more in local plants, disapproving of the company's ambitious expansion overseas.
In order to avoid chronic labor disputes at home and risks from currency fluctuations, Hyundai is aggressively building plants overseas. Hyundai has factories in the United States, China, India, Turkey and the Czech Republic. The automaker is also building a plant in Russia.
Officials at Hyundai's public relations team in Seoul were not immediately available for comment.
Strikes have been an almost annual affair for Hyundai, which ranks as the world's sixth-largest automaker with its affiliate Kia Motors Corp. The union has walked out every year but one since 1987.
So far this year, unionized workers at Hyundai and Kia have intermittently staged partial strikes to oppose the government's decision to resume imports of U.S. beef.
This year's strikes cost Hyundai and Kia about 340 billion won in lost production, according to the companies' previous announcements.

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