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Supreme Court rules Hyundai Motor illegally used subcontracted test drivers as employees

Published: 27 Oct. 2025, 15:43

The Supreme Court building is seen in southern Seoul on Oct. 20. [YONHAP]

The Supreme Court ruled on Monday that Hyundai Motor illegally used subcontracted test drivers at its Namyang Research Center in Hwaseong, Gyeonggi, confirming that the workers should be recognized as company employees. One plaintiff’s claim was dismissed due to retirement during the case.

The Supreme Court upheld a lower court ruling that recognized 16 employees from subcontractor Dongin Auto as de facto Hyundai Motor workers.

“There was no misinterpretation of the legal principles concerning the Act on the Protection of Dispatched Workers that could have affected the ruling,” the court said.

Hyundai Motor signed a contract with Dongin Auto in 1997 for work at its Namyang Research Center involving durability tests, maintenance and inspections of commercial prototype vehicles. The contract amount was calculated by estimating the total time required to complete the assigned tasks and factoring in the projected number of workers and their corresponding labor costs.

Dongin Auto employees received vehicles and testing orders through Hyundai Motor’s durability test order sheet, which specified vehicle numbers and testing schedules. After completing the tests, the workers submitted daily driving logs to the Hyundai team leader, who compiled the data into a report submitted to Hyundai Motor.

Based on these circumstances, 16 workers including a man surnamed Lee filed suit in May 2017, arguing they had effectively worked under Hyundai Motor’s direction while being dispatched illegally without proper employment status.

Hyundai Motor countered that the driving work was done under a legitimate subcontract and that its “driving manual” was only intended to provide basic procedural guidance.

In October 2018, the lower court ruled in favor of the plaintiffs, stating, "The workers repeatedly conducted durability tests requested by Hyundai Motor according to a schedule set by the company. It is reasonable to view this as part of Hyundai Motor’s command and supervision."

The appellate court affirmed the lower court’s decision in February 2021, although it revised some factual details such as employment dates.

The Supreme Court largely upheld the ruling but reversed the decision for one plaintiff, surnamed Kim, who reached retirement age in December 2022 during the appeals process.

Since Kim could no longer return to work, the court found there was “no longer legal benefit to confirming his employment status” and dismissed that part of the claim.

The justices said they would "directly rule on the matter without remanding it to a lower court," citing sufficient grounds to do so.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JUN-YOUNG [[email protected]]