Introduction The automobile industry is in great transformation. The process of digitalization and environmental regulations and digitalization in a variety of countries have resulted in a rapid emergence of new products, such as vehicles that run on electricity or hydrogen, are self-driving and/or connected, and have accelerated the automation of the p roduction process in the workplace(i.e., the“smart factory”). In addition, as a new business model known as the“sharing economy”(mobility services etc.) is emerging, the auto industry is shifting its focus onto services. International trade conflicts and the COVID-19 pandemic are also bringing major changes to the industry’s value chain. Such great shifts are heightening uncertainty about the future of the auto industry and its labor force. Jobs related to internal combustion engine(ICE) vehicles will disappear. Accordingly, jobs in the industry are on the decline, and some parts suppliers are struggling to stay afloat. There is no question that the automotive industry is currently undergoing major changes. What these changes bring about depends on the responses. They may serve as disasters, or they can be harbingers of opportunity to create new engines for development. Then, where is the Korean auto industry going? What kind of actions do labor unions need to take? With these issues in mind, this study first examines the relationship between automakers and(sub)contractors in Korea(Part II). Next, it explores the challenges facing labor unions while analyzing labor relations in the Korean auto industry(Part III) and Korea’s industrial policies(Part IV). It then looks at the counterstrategies of IG Metall, Germany’s metalworkers’ union, during that nation’s transition period and implications for Korea(Part V) before finally drawing overall conclusions(Part VI). Introduction 1 The South Korean Automobile Industry in Transition: A Trade Union Perspective