Hyundai and Kia will take on extra workers to cut the number of hours each production line employee works following an investigation by the Ministry of Labour.
The companies told the ministry they would take on an extra 1,400 workers and invest about KRW360bn (US$266m) in facilities to end night shifts and reduce weekly hours from 55 closer to the national average of around 41 hours.
The transition is due to be completed by 2013.
The ministry caught Hyundai-Kia and other carmakers exceeding the legal working hours in October.
“Hyundai-Kia informed us of its plans to correct the illegal practices and the ministry approved it today,” labour minister Lee Chae-pil said.