Kakao's labor dispute is showing signs of escalating. Following the company's first-ever strike by its labor union, an additional strike is planned for the 29th, indicating that the gap between management and labor remains wide.
On June 10, the Kakao branch of the National Chemical Fiber Food Industry Workers' Union held its first strike rally in front of the Kakao office in Pangyo, Seongnam. The union conducted a four-hour strike from 10 a.m. to 3 p.m. (excluding lunch). Slogans such as "Let's secure job stability," "Irresponsible management must resign," and "Victory in the Kakao strike to achieve joint negotiations" were chanted. Over 500 participants marched from Pangyo Station Square to H Square, wearing matching black T-shirts and carrying white umbrellas.
According to the union, more than 1,000 employees logged off from the company's internal system to join the strike at Kakao's headquarters alone. Including subsidiaries such as Kakao Pay, Kakao Entertainment, DK Tech, and XL Games, the total number of participants is estimated to be around 1,500. Five corporate unions with dispute rights participated in the strike.
In response, Kakao has implemented emergency measures. The company, in collaboration with the Ministry of Science and ICT, reviewed its emergency response system and prepared plans focusing on essential personnel to minimize service disruptions, given that services like KakaoTalk and KakaoMap are closely tied to daily life. Despite the strike, all of Kakao's services continued to operate normally without any disruptions.
This strike is significant as it marks the first labor action since Kakao's establishment. The union has been advocating for measures to alleviate job insecurity stemming from the sale of subsidiaries, spin-offs, and restructuring, as well as the establishment of a joint negotiation system. Conversely, the company maintains that it cannot fully accommodate the union's demands due to the internal and external business environment. Negotiations continue even after the second labor committee mediation failed, but the divide between the two sides remains substantial.
The core issue of the labor dispute centers on compensation. The union demands a performance bonus equivalent to approximately 10 million won, which is about 13-14% of operating profit, along with an additional 5 million won in restricted stock units (RSUs). The company has not budged on its stance that these demands could impose a financial burden, and disagreements over performance compensation remain unresolved.
During the rally, the union also addressed the recent departure of Chief Product Officer Hong Min-taek. The union stated, "The investigation into related matters should not cease just because the responsible party has left the company," emphasizing the need for thorough accountability.
Kakao has stated that it will continue negotiations with the union. However, with the union announcing an additional strike, the labor dispute that began with the company's first strike is expected to persist for the foreseeable future.
* This article has been translated by AI.
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