The Kakao labor union is set to begin the company’s first partial strike at the headquarters today (10th). The National Chemical Fiber Food Industry Labor Union Kakao Branch will stage a partial strike from 10 AM to 3 PM. Additionally, there will be a march in the Pangyo area from 11:30 AM to 12:30 PM.
Initially, the union reported to the police that about 2,000 members would gather from 9 AM to 4 PM, but it is estimated that around 600 members will actually participate. The companies involved in the strike include Kakao Corporation, Kakao Pay, Kakao Enterprise, DK Techin, and XLGames.
The Kakao labor and management have previously shown discrepancies over the size and method of performance bonuses. There is a disagreement over whether to include a “transfer-restricted stock (RSU) worth 5 million KRW” in the bonus, calculated as 13-14% of last year’s operating profit.
The union has demanded a performance bonus equivalent to about 10 million KRW, representing 13-14% of operating profit, excluding RSU. In contrast, the management believes the union’s demands impose a significant burden on management.
The government is also paying close attention to the Kakao strike. On June 8, the Ministry of Science and ICT held an emergency inspection meeting with Kakao to discuss the stable operation and emergency response plans of key digital services like KakaoTalk and KakaoMap.
Kakao stated, “Ensuring service stability without causing inconvenience to users is Kakao’s vital responsibility, and the company will do its utmost to maintain stable service operations with the necessary response systems in place.”
Industry insiders believe this partial strike is unlikely to lead to actual service disruptions. However, the symbolic burden of Kakao headquarters experiencing its first strike in company history is significant. Furthermore, ongoing conflicts over employment and compensation among subsidiaries may prolong the labor-management confrontation.