Kakao's labor union is poised to launch a strike next month after a second mediation session between the company's headquarters management and the union ended without an agreement.
According to the information and communications technology (ICT) industry on the 28th, Kakao's labor and management held an eight-hour tug-of-war negotiation over key issues during the second mediation meeting at the Gyeonggi Regional Labor Relations Commission the previous day, but failed to narrow their differences and received a "mediation suspension" decision.
The biggest point of contention is the "performance bonus compensation structure." The headquarters union has demanded that 13-14% of last year's operating profit be paid as performance bonuses and that restricted stock units (RSUs) worth 5 million won be excluded from the performance bonus package.
With the breakdown of mediation giving the headquarters union legal right to strike, Kakao now faces the prospect of the first full-scale walkout in its history. Unions at four affiliates that have already secured the right to strike — Kakao Enterprise, Kakao Pay, DK Techin, and XL Games — have all passed strike votes in earlier ballots.
As industry attention turns to whether and when an actual strike will take place, the union said it would leave the door open to further negotiations with management.
