The rapid development of the Korean auto industry in the I980s was based on mass production and government policies, which included the suppression of trade unions. Following the 'democratisation' of Korea in I987 and the reform of labour laws, employers in the auto industry were required to bargain collectively with trade unions and improve their employment practices. The failure of Kia Motors (now part of the Hyundai Motor Company) to successfully make the transition from mass to lean production during the I990s demonstrates the importance of integrating the production system with human resource development and employee relations.
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