April 23, 2024

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[THE INVESTOR] Kia Motors said on Oct. 27 it swung to a net loss in the third quarter due to weak China sales and one-off provisions involving wages.

The country’s second-largest carmaker shifted to a net loss of 291.8 billion won (US$258 million) in the July-September quarter from a net profit of 664.3 billion won a year earlier.

Kia reflected 1 trillion won in one-off expenses in the third-quarter bottom line as a Seoul court ruled in August that fixed bonuses and meal costs are part of ordinary wages. Kia has been ordered to pay an overdue amount of 422 billion won, or 39 percent of what the union had requested.

The company also has to provide higher overtime, severance and other compensation to its workers.

By Alex Lee and newswires (alexlee @heraldcorp.com)