Kakao Union to Strike Next Month as Labor Dispute Falters

Mediation between Kakao headquarters' management and labor regarding performance bonus payments has ultimately failed. The Kakao union plans to proceed with a strike next month. Although management and labor held an eight-hour meeting, the mediation process with the Gyeonggi Regional Labor Relations Commission was suspended, citing complex points of contention.

Key issues included proposals such as compensating employees with 13-14% of last year's operating profit as bonuses, and incorporating restricted stock units (RSUs) valued at 5 million won into performance compensation. Both sides failed to narrow their differences.

With the mediation's failure, the Kakao union, having secured legal grounds for industrial action, announced it will actively prepare for strike activities. Kakao management stated that it will keep the dialogue channel open with the union even after the mediation breakdown and will continue to strive for an agreement. If the Kakao headquarters proceeds with a strike, it will be the company's first strike since its inception.

Four affiliate companies – Kakao Enterprise, Kakao Pay, DK Techin, and XL Games – have also approved strike votes, raising the possibility of a total strike involving both headquarters and its affiliates.