Hyundai Motor Group, the world's fifth-largest auto giant, plans to employ over 10,000 new workers this year as part of efforts to create more jobs for young people and improve the economy, industry sources said Tuesday.

Hyundai Motor Group, the parent of Hyundai Motor Co. and Kia Motors Corp., earlier announced it will employ 9,500 new workers this year. In addition to the plan, the company will hire 1,000 more in line with its recent push to introduce a wage peak system.

The total employment will likely reach 10,500, the largest ever. This would also represent the first time its annual hiring exceeds the 10,000 mark.

"With the introduction of a wage peak system and other efforts, we will be able to see our annual employment exceed 10,000 for the first time since our establishment," a company official said. "It reflects our commitment to tackle high youth joblessness and help revive the economic momentum."

A wage peak system allows employees to accept a reduced salary in exchange for working until the retirement age set by the company. Last week, Hyundai Motor Group decided to adopt the system on a groupwide scale.

Whether the auto group can go ahead with the employment plan will hinge much on cooperation from its workers over the proposed wage peak system, an employment scheme usually opposed by labor unions. 

Hyundai Motor Group plans to start talks with union representatives of its affiliates "sooner or later" on how and to what extent the wage peak system will be introduced. It will seek active participation and cooperation from its affiliates, company sources said.

Currently, South Korea's labor market remains tough, especially for younger people. Government data showed that the jobless rate for those aged 15-29 stood at 9.4 percent in July, much higher than the headline unemployment rate of 3.7 percent.

Hyundai Motor Group said that its proposed wage peak system is designed to expand job opportunities for younger people and stabilize the overall employment conditions, promising it will keep investing in talented young workers down the road. (Yonhap)