(Recasts, adds byline, union comment in paragraphs 6-7)
By Song Jung-a
SEOUL, July 23 (Reuters) - South Korea's Kia Motors Corp reached a wage agreement with its union on Tuesday to end more than a month of partial strikes blamed for almost $400 million in delayed production.
The union at South Korea's second-largest automaker said it had accepted wage hikes and bonuses in a deal similar to one that ended strikes at sector leader Hyundai Motor last month.
Both belong to the Hyundai Motor Group conglomerate.
"The workers voted to accept our latest offer on wage hike," Kia said in a statement.
The settlement buoyed Kia shares, which jumped 8.5 percent to 10,900 won versus the broader market's 3.14 percent rise.
A union official said workers had already returned to normal operations.
"We ended strikes on July 19 when the company offered the wage hike," he said.
The union had held half-day walkouts since late June to demand higher wages and shorter work hours. The walkouts delayed production of 35,000 vehicles, Kia said.
This year's annual wage demands were spurred by record earnings at both Hyundai and Kia last year.
Kia's union accepted an 85,000 won ($72.59) raise in monthly salaries and performance bonuses worth 1.5 months' wages plus 800,000 won.
Workers will also receive another 10,000 won allowance each month.
Kia expects 2002 sales to rise 12.5 percent to 13.9 trillion won helped by the upgraded Sorento sports utility vehicle and mid-sized Regal sedan.
It expects sales to rise 6.6 percent to 962,000 units. ($1=1171 won)