Kakao faces first-ever strike since founding; march planned in Pangyo today

[Financial News] Kakao labor union will go on strike for the first time since the company was founded on the 10th.
The Kakao Branch of the National Chemical, Textile and Food Industry Workers' Union, known as Crew Union, said it will stage a partial strike from 10 a.m. to 3 p.m. on the day, excluding the lunch break. The union also plans to hold a protest march for one hour during lunch, from in front of Kakao Pangyo Agit to U Space, covering about 800 meters.
Four affiliates that secured the right to strike together with Kakao Pay, Kakao Enterprise, DK Techin and XL Games will also join the walkout.
Labor and management held one additional round of talks after the strike was made official, but they reportedly failed to reach an agreement. The two sides remained at odds over the compensation system, including performance-based bonuses, which had been the key issue in the breakdown of wage negotiations.
Earlier, the two sides had continued negotiations over wage increases and performance bonuses, but the second mediation by the Gyeonggi Regional Labor Relations Commission on the 27th of last month was suspended, allowing the union to secure the right to strike. The union then announced on the 1st of this month that it would begin striking on the 10th.
The core of the labor dispute is the standard for performance-based compensation. The union is demanding a bonus worth about 10 million won, equivalent to 13% to 14% of last year's operating profit. It also argued that the 5 million won worth of restricted stock units (RSUs) previously provided by management should not be counted as part of the bonus and should be paid separately.
Kakao management, meanwhile, is said to have proposed a pool for performance compensation that includes RSUs. The union said the amount corresponds to about 10.5% of operating profit. In a statement released on the 29th of last month, management said, "The scale of the compensation package demanded by the union places a heavy burden on the company's operations," adding that performance compensation must be set at a sustainable level that also takes into account future investment capacity and shareholder value.
The strike is not expected to cause major disruptions or a large-scale service outage for users of KakaoTalk, Kakao Pay and other key services. In the IT sector, many core service systems are highly automated, and essential operating staff needed to maintain service continuity will remain on regular duty.
Management said it will do everything possible to keep services stable. A Kakao official said, "As a platform company that connects the daily lives of countless users, it is our important responsibility to operate services stably so that users are not inconvenienced under any circumstances," adding, "We will prepare all necessary emergency response systems and do our utmost."
The union plans to begin with a partial strike and then gradually escalate the action depending on the progress of negotiations.
sms@fnnews.com Sung Min-seo Reporter