Ssangyong Motor Co. has reportedly reached a tentative agreement with its trade union to end a 12-day strike, the company said yesterday, according to The Korea Herald newspaper. The contract includes a 6.8 percent pay rise and incentives and bonuses equal to three months of monthly wages. The union had asked for a 10.5 percent raise.

"We are very pleased to have reached the tentative agreement. The management and workers here are well aware of the importance of the early settlement this year. Both sides will do their utmost to finish the contract talks soon," the company said in an e-mailed statement.

The Korea Herald said that Labour leaders say they are not entirely satisfied with the deal but an agreement was necessary. "Given that our company is under a hard situation, we have opted to avoid a lengthy dispute," said Lee Young-ho, the union spokesman.