Shares in South Korea's top carmaker Hyundai Motor declined 4 percent on Friday, hit by mounting worries about potential labor disputes after wage talks with its domestic union collapsed, analysts said.
There appears to be talk of a strike among Hyundai Motor union members...I think a partial or full strike may take place by September, said Suh Sung-moon, an analyst at Korea Investment & Securities.
Hyundai's labor union said on Thursday its annual wage talks with the company had broken down, setting the stage for a potential strike.
A Hyundai official said the company would continue to seek negotiations with the union.
Shares were also pressured by local media reports that Hyundai was planning to offer free domestic repair services for some 70,000 new Sonata sedans over potential oxygen sensor problems.
Shares in the country's top automaker fell 4.3 percent to 134,000 won as of 0232 GMT, versus the broader market's 0.41 percent loss.
(Reporting by Jungyoun Park and Cheon Jong-woo; Editing by Jonathan Hopfner)