Kakao Union Seeks Mediation After Failed Labor Negotiations

The Kakao Union has applied for mediation with the Gyeonggi Provincial Labor Commission following the breakdown of labor negotiations. Disagreements over the performance bonus structure have left the possibility of strike actions open.

According to Yonhap News on May 10, the Kakao branch of the National Chemical Fiber Food Industry Workers' Union submitted the mediation request after recent negotiations with the company failed. The request involves four entities: Kakao, Kakao Pay, Kakao Entertainment, and DK Tech.

Reports indicate that the two sides have been at odds over the design of the performance bonus structure. In the IT industry, SK Hynix's decision to allocate 10% of its operating profit for performance bonuses has reportedly influenced the demands of the Kakao Union.

If an agreement is not reached during the labor commission's mediation process, the union may proceed with strike preparations. However, a failed mediation does not automatically lead to a strike; the decision will depend on the mediation outcome and an internal vote among union members.

This is not the first time the Kakao Union has sought mediation due to failed negotiations. The union previously applied for mediation in 2024 after negotiations also broke down.