Hyundai Motor and Kia Motors labour unions have postponed planned collective action and resumed wage negotiations with management, local media reports said.
The unionised auto workers decided to put off the strike while the economy was under pressure from Japan's restrictions on exports to Korea, Korea Joongang Daily said.
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Hyundai Motor's union said on Tuesday it would resume wage talks with management until 20 August, as requested by the automaker.
It said the agreement to continue negotiations was reached among union officials after discussing Japan's economic retaliation against Korea.
"Our officials made many discussions as Japan removed Korea from its white list soon after we returned from summer vacation to start the strike," the union said in a newsletter sent to its members on Tuesday.
"The union strongly criticises Japan's economic retaliation against Korea but we are firmly against others abusing that to limit or distort our lawful strike efforts."
Kia Motors' union also announced in a statement the same day it had resumed talks with management over wages, adding it had considered prime minister Lee Nak-yon's request to talk and collaborate with management to minimise conflict.
The union said it would continue talks with management for the next two weeks while holding another meeting within the union on 26 August to decide whether to continue with its strike effort.
Hyundai Motor's labour union voted to strike for the eighth consecutive year two weeks ago after 16 rounds of wage negotiations held since 30 May failed to produce an agreement.
Workers at Kia Motors also voted to strike late last month and were preparing to wage a collective strike effort along with Hyundai Motor, Korea Joongang Daily said.
Both unions earned the legal right to walk out at any moment as the National Labour Relations Commission ruled not to intervene, the report added.
