In July 2022, it was reported that children as young as twelve were found working at a plant operated by SMART Alabama LLC, a subsidiary of Hyundai, which manufactured parts for the carmaker. This revelations came after the brief disappearance of a migrant Guatemalan child in February, when it was discovered she and her two siblings had been employed at the factory.

These findings and pressure from investors prompted the company to launch a broader investigation of child labor in its US supply chain, which led to four major suppliers of Hyundai Motor Co and its sister Kia Corp being found as having employed child labour in recent years.

In February 2023, Hyundai announced it had divested from SMART Alabama LLC, and announced to investors it was implementing new corporate measures to prevent future child labour violations, including a training program in collaboration with the US Department of Labour.