As of 1:27 PM on June 10, shares of Kakao were trading at 37,800 won, down 1,700 won (4.30%) from the previous trading day, according to the Korea Exchange.
The drop in stock price is attributed to the partial strike that began at 10 AM. The Kakao branch of the National Chemical Fiber Food Industry Labor Union announced that the strike would continue until 3 PM, excluding a break from noon to 1 PM, totaling four hours of action.
Employees from five subsidiaries, including Kakao's headquarters, Kakao Pay, Kakao Enterprise, DK Tech, and XL Games, are participating in the strike. These subsidiaries secured the right to strike after negotiations over wage collective agreements broke down, and a vote on whether to strike passed in favor.
Previously, Kakao and the union failed to reach an agreement regarding performance bonuses, which were proposed to be 13% to 14% of last year's operating profit, as well as the inclusion of 5 million won worth of restricted stock units (RSUs) as part of the bonus.
The union is demanding a performance bonus equivalent to approximately 10 million won, based on the 13% to 14% of operating profit, and insists that RSUs should not be included in the bonus calculation. The company, however, has stated that these demands pose a financial burden on management.
* This article has been translated by AI.
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