Kakao Union Votes to Strike Over Wage Dispute
Quick Look
- Kakao Corp.'s labor union has voted in favor of a strike after wage negotiations with management failed.
- Unionized members at five Kakao units, including the headquarters and affiliates like Kakao Pay, are seeking performance-based incentives.
AI-generated summary
Why It Matters
A labor union of Kakao Corp., operator of South Korea's popular messenger service, has voted in favor of a strike after wage negotiations with management fell through. Unionized workers at Kakao headquarters and four affiliates approved the plan. The union is seeking performance-based incentives.
SEOUL, May 20 (Yonhap) -- A labor union of Kakao Corp., the operator of South Korea's popular messenger service, said Wednesday that unionized members at five units voted in favor of a strike after wage negotiations with management fell through.
Unionized workers at Kakao headquarters and four affiliates -- Kakao Pay, Kakao Enterprise, DK Techin and XL Games -- approved the plan to go on strike, the union said.
"As we have secured the legal right to strike, we will share the plan with union members," a union official said.
The union previously filed for mediation with the Gyeonggi Regional Labor Relations Commission after failing to reach an agreement with management in wage negotiations.
The union is reportedly seeking performance-based incentives equivalent to around 13 to 14 percent of the IT giant's operating profit.
Mediation proceedings involving Kakao were postponed until May 27, while talks involving the four affiliates ended without agreement.
The latest development comes amid broader calls for performance-based pay and profit-sharing at major South Korean companies.
Samsung Electronics's largest labor union said it plans to stage an 18-day strike beginning Thursday after government-mediated negotiations over performance-based pay broke down earlier in the day.
What to Watch
AI outlook — possibilities, not facts
Strike action may commence at Kakao Corp. if mediation fails.
Likely · Within weeks
Open Questions
- What specific performance-based incentives are being sought?
- What is the exact date the strike will commence if it proceeds?
- What is the management's counter-proposal or stance on the union's demands?
- What is the potential financial impact of the strike on Kakao Corp. and its affiliates?
