Kakao's labor and management have temporarily averted a strike crisis by extending the mediation deadline with the labor committee amid disputes over wages and performance compensation. However, concerns remain about potential chain strikes as some affiliates have experienced mediation breakdowns.
According to industry sources on May 19, Kakao's labor and management agreed to extend the mediation deadline during a session facilitated by the Gyeonggi Provincial Labor Relations Commission the previous day. The meeting, which began at 4:30 PM, concluded around 10 PM.
If both parties reach an agreement, the deadline can be extended by up to 10 days from the date of the mediation request. The second mediation deadline is set for May 27.
Kakao's labor union has been negotiating with management over the performance compensation structure and wage increases but declared a breakdown in talks after failing to reach an agreement. In addition to Kakao, unions from four subsidiaries, including Kakao Enterprise and Kakao Pay, have also requested mediation from the Gyeonggi Provincial Labor Relations Commission.
Notably, some affiliates decided to halt mediation before Kakao's headquarters. The labor unions of DK Tech and XL Games conducted mediation on the same day but ultimately did not reach an agreement.
A halt in mediation is determined when significant differences between labor and management make it difficult to achieve an agreement through further discussions. As a result, these unions have gained the authority to initiate strike actions, such as strikes or work slowdowns, following a vote among their members.
The two sides have reportedly disagreed over the funding for performance bonuses and the design of the compensation system. Industry observers note that SK Hynix's recent decision to allocate 10% of its operating profit for performance bonuses may have influenced the demands of Kakao's labor union.
With the extension of the mediation deadline, Kakao's headquarters has temporarily avoided a crisis. If the union proceeds to strike after the mediation halt, it would mark the first strike at Kakao's headquarters.
The union has announced plans for a rally on May 20 at Pangyo Station in Seongnam, Gyeonggi Province. Industry insiders are watching closely to see if the union will escalate pressure on management during future negotiations.
A Kakao representative stated, "The mediation deadline was extended by mutual agreement between labor and management, and we will continue to strive for a smooth resolution."
* This article has been translated by AI.
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