More businesses, openings at Hyundai-Kia job fair

Hyundai Motor Group appears to be gearing up to follow President Park Geun-hye’s plan to create jobs and boost shared growth with SMEs, if the group’s annual job fair for suppliers and cooperative firms is any indication.

The world’s fifth-largest automotive group expects more than 20,000 people to attend the job fair this year at Coex in southern Seoul, and nearly half will find a job with its first-tier suppliers. Last year, 15,000 people were hired.

At the event, Minister of Knowledge Economy Yoon Sang-jik and Yoo Jang-hee, chairman of National Commission for Corporate Partnership, among other government officials, praised the event as a good example of the private sector helping to solve the unemployment problem among young people.

“Job creation is an important task [for us] to open an era of happiness,” said Phang Ha-nam, minister of employment and labor. “Hyundai’s shared growth with its suppliers and cooperative firms will contribute to providing employment opportunities for the young generation.”

The event hosted by nation’s two largest automakers - Hyundai Motor and Kia Motors - enters its second year. The job fair will be open today for applicants in the Seoul area. It will move to Gwangju next Thursday and Daegu on March 28.

This year, Hyundai’s first-, second- and third-tier suppliers, and cooperative firms joined the job fair. Total of 430 companies were expected to be represented.

“We decided to participate without a hesitation after second-tier suppliers were asked to join the fair this year,” said Yoon Yong-ho, a personnel team manager at Daeil Industries, which specializes in making seat frames. “We hope to recruit talented people under the brand value of Hyundai and Kia.”

Corresponding to Hyundai’s rise in the global market, its suppliers also have grown sharply. According to the automaker, the 300 first-tier suppliers averaged sales of 233.7 billion won ($210 million) last year, up 10.6 percent from 211.3 billion won in 2011.

The growth is even higher than Hyundai and Kia’s average sales growth of 8.9 percent.

Hyundai and Kia suppliers also have been expanding in size. In 2001, only 37 suppliers were considered as midsize firms earning up to 500 billion won a year, but last year the number jumped to 109. As a result, midsize firms represent 38 percent of Hyundai’s first-tier suppliers.

In addition, more than 600 auto parts suppliers operate overseas, a dramatic increase from 40 in 2000.

Hyundai said it has enjoyed a good relationship with its suppliers for a long time. According to the automaker, it has worked with its suppliers an average of 27 years, which far exceeds industry average of just over 11 years. Twenty-five companies have been with Hyundai since its founding in 1967. Hyundai said it will focus this year on building the competitiveness of its second-tier suppliers

The group announced earlier this year its second-tier suppliers can use its shared growth fund and machinery system establishment fund. It will also try to encourage cooperation between its 300 first-tier suppliers and 5,000 second-tier suppliers.

By Joo Kyung-don [kjoo@joongang.co.kr]