Kia has said it is further cutting back work hours at its main domestic plant because of falling sales amid the global recession, the Yonhap news agency has reported.

"Lower overseas demand made us reduce even regular work hours as well as extra work time at the Gwangju plant," a Kia union spokesman told Dow Jones Newswires.

Earlier this month Kia said the 28,000-worker union has agreed on a "flexible production system" to overcome the "auto industry crisis" but no other details were given.