The value of vehicles exported from South Korea declined by 30% to US$ 3.85 billion in August 2026 from US$5.49 billion a year earlier, according to data released by the country’s Ministry of Trade, Industry and Energy. The large drop reflected a sharp decline in shipments by Hyundai Motor, the country’s largest automaker, due to production disruptions.

By volume, overseas shipments declined by 27% to 146,000 units last month, while the domestic market shrank by 21% to 110,000 units, according to the government data. Overall vehicle production plunged by 36% to 206,000 units.

The value of exports to North America dropped by 28% year-on-year to US$ 1.84 billion in August, while exports to Europe fell by 17% to US$ 659 million. Exports to other markets in Asia plunged by 42% US$ 343 million (-42%), while to the Middle East the value of shipments fell by 24% to US$ 234 million.

Hyundai was affected by escalating strike action in July and August, which significantly impacted its domestic production operations, resulting in sharply lower domestic sales and exports. The company has since signed a wage agreement with its labour union and expects to make up some of the lost volume in the final months of the year.

The Ministry said it also expects vehicle production and exports to recover in the final months of the year, as all major automakers in the country have now reached wage agreements with their labour unions.