Kakao Says Union’s Bonus Demand Is a Burden on Management, ‘Realistically Difficult’

[Financial News] Kakao, which is facing the threat of its first headquarters strike since its founding, apologized for the current wage bargaining situation. The company said the size of the performance bonus demanded by the labor union is weighing on management.
On the 29th, Kakao said in a statement, "We sincerely apologize to users, shareholders, and partners who have shown great interest in Kakao for causing concern over the recent wage bargaining situation."
At the second mediation session held on the 27th at the Gyeonggi Regional Labor Relations Commission, labor and management at Kakao’s headquarters failed to reach a final agreement, and the labor union has warned of a strike next month. The two sides reportedly remained divided over the criteria for performance bonuses and whether the 5 million won payment in Restricted Stock Units (RSUs) should be counted as part of the bonus.
Kakao said, "The total size of the performance compensation package currently demanded by the labor union is a significant burden on the company when viewed against operating profit," adding, "From the company’s perspective, which must secure future growth engines and raise shareholder value, it is also a burden that is realistically difficult to absorb."
Kakao then emphasized, "Performance compensation should be balanced in a sustainable way, taking into account both future investment capacity and the enhancement of shareholder value."
It also said, "We are a platform company that connects the daily lives of countless users and supports the businesses of small merchants and partners," adding, "No matter the circumstances, the company will do its utmost to maintain stable service operations and ensure users do not experience inconvenience."
Kakao also stressed that, in competition with Global AI Big Tech, this is a time when it must concentrate all its capabilities on survival and the future.
Kakao added, "Labor and management cannot be separate in the process of overcoming internal and external difficulties and protecting the trust of shareholders and users," and "We will keep the door open for dialogue until the very end and do our best to ensure that shareholders, partners, and other stakeholders are not affected."
 
wongood@fnnews.com Joo Won-kyu Reporter