“The Kakao crisis began with indiscriminate spin-offs”
“The decision to spin off the Content CIC is essentially a sale”
On March 19, the Kakao branch of the Korean Federation of Chemical, Fiber, and Food Trade Unions (Crew Union) held a press conference in front of Kakao’s Pangyo office in Seongnam, Gyeonggi Province, opposing the spin-off of the Content CIC, which operates the portal service ‘Daum.’
As Kakao announced plans to spin off the ‘Daum’ service into a separate entity, the Kakao labor union held a protest and began a hunger strike.
The Crew Union of the Chemical Fiber Food Union, under the Korean Federation of Trade Unions, held a press conference at Kakao’s Pangyo office on the morning of the 19th, stating, “This decision is no different from a sale,” and called for the suspension of the spin-off and sale.
Kakao has been operating the portal Daum as a Corporate Independent Company (CIC) since 2023. On the 13th of this month, Kakao shared the spin-off plans for the Content CIC, which manages Daum, with its employees through an internal town hall.
Seo Seung-wook, head of the Kakao branch union, emphasized, “If the Content CIC is closed or if its shares are sold after the spin-off, the problem will worsen, and no one will be held accountable,” adding that “such impulsive decisions, without accountability, threaten the lives of nearly 800 workers.”
Moreover, referencing Kakao’s past cases of spin-offs, the union stated, “Kakao’s crises began with indiscriminate spin-offs without preparation,” highlighting that “in processes involving numerous spin-offs and sales like Kakao Commerce, Kakao Enterprise, Kakao Pay, and Kakao Mobility, confusion and risks were entirely borne by the workers.”
The Kakao union also stated that wage negotiations are at a prolonged impasse. Seo mentioned, “Negotiations for wage and collective agreements have been stalled in many corporate bodies since 2024, with the management unilaterally forcing payments.”
The Kakao union started a hunger strike inside the Pangyo office from that day.
They also emphasized, “We will prevent irresponsible spin-offs and sales and aim to conclude wage and collective agreements through joint bargaining and joint struggle with all subsidiaries,” stating that if there is no progress in wage negotiations by the day before Kakao’s regular shareholders meeting on the 25th, they will declare a collapse of negotiations for the nine legal entities currently under negotiation.
In response, Kakao stated, “The Content CIC spin-off is just in the initial preparation stages, and employees have the option whether to transfer to the spin-off company,” adding, “We will continue to communicate with the Crew Union and other employees to find the best solutions.”