The Kakao Union is opposing the company's plan for a corporate split and aims to persuade major shareholders, including the National Pension Service, to vote against the proposal at the upcoming shareholders meeting in December.
On August 26, the Kakao branch of the National Chemical Fiber and Food Industry Workers' Union held a press conference in Pangyo, Seongnam, following a declaration of a strike at Kakao Bank and the announcement of their opposition to the split. The union stated it is taking action to defeat the plan to divide Kakao into KakaoX and KakaoAI.
The union is also pursuing joint negotiations to unify the entire Kakao community under a single framework, focusing on common issues such as job security, compensation, and responsible management.
Kakao announced on August 21 its plan to split into a new company, KakaoAI, which will lead its artificial intelligence platform business, and a continuing entity, KakaoX, which will manage investments and subsidiaries.
Seong-wook Seo, head of the Kakao branch, pointed out that the current split proposal does not address existing issues within Kakao. He stated, "The corporate split plan should include a recognition of the problems and solutions, but currently, the plan is presented first, with solutions to follow later."
The union plans to focus on securing votes against the split from shareholders other than the major shareholders, as the split requires a special resolution at the shareholders meeting. They intend to explain their opposition to the National Pension Service and inform individual shareholders about the issues with the split.
Seo noted, "The major shareholders hold about 24% of the shares, and even with friendly shares added, they do not reach a majority. We believe we can gather enough votes against the special resolution."
The joint negotiations will be conducted at the union level, uniting the entire corporation rather than addressing KakaoX and KakaoAI separately. According to the union, discussions for joint negotiations have been ongoing since May, and they formalized this effort following Kakao's announcement of the corporate split.
The joint negotiations will focus on principles of reflecting management performance in compensation, responsible management, job security, and welfare as common agendas.
Concerns among Kakao employees regarding changes in employment and corporate affiliation have also emerged in light of the split. Employees are worried because the company has not clearly defined the roles of each entity and the scope of personnel movement after the split.
The union reported a notable increase in membership among Kakao employees following the split announcement. There has also been a rise in membership from subsidiaries that will be incorporated under KakaoX, driven by fears of potential sales.
The union cited past instances where employees did not change jobs during spin-offs, reorganizations, or sales, yet their affiliated companies changed multiple times, as a basis for distrust regarding the current split.
Seo stated, "The company has not provided clear answers about the roles of KakaoX and KakaoAI. Our goal is to have as many discussions as possible before the split to make the future situation predictable."
The union plans to submit a joint demand to the company and request official negotiations. They also intend to share an internal action plan against the split with union members by the end of this month. Additionally, they will raise questions about whether KakaoX, which will become the parent company of Kakao Bank after the split, aligns with the purpose of the internet-only banking system.
Meanwhile, the Kakao Bank union has announced a total strike from August 31 to September 4 in response to prolonged negotiations over wages and performance compensation.
* This article has been translated by AI.
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