Hyundai Motor's Ioniq 5 assembly line at the company's Ulsan plant. / Courtesy of Hyundai Motor Group

By Kim Hyun-bin

Hyundai Motor's labor and management have reached an agreement to build a new electric vehicle (EV) production plant here. Once completed, it will become the firm's first newly built domestic factory in 29 years, Korea's largest carmaker said, Tuesday.

The company said it reached the landmark agreement with the union during the 15th round of wage negotiations that were held at its Ulsan plant, Monday. The deal should help improve responses to the fast-changing global car industry, while securing future competitiveness for domestic factories as well as ensuring employment stability.

In order to meet the rapid increase in global EV demand, the company will start construction of an EV-only plant in 2023, while completion is scheduled for 2025.