The head of South Korea’s Kakao, Chung Shin-a, issued an apology for the failure to address worries regarding ongoing wage discussions. Despite a second round of mediation ending without an agreement between the labor union and management, Chung expressed regret for not resolving concerns promptly. He emphasized the need for dialogue to bridge differences and unite under Kakao.
Chung hinted at a potential reorganization within the company to establish stability, redefine service standards, and align their direction. Additionally, Kakao’s Chief Product Officer, Hong Min-taek, is reportedly planning to resign, following his involvement in the controversial update of KakaoTalk. The update faced criticism for its Instagram-like feed feature.
The labor union at Kakao is preparing for a demonstration near the company’s headquarters in Pangyo on June 10. With plans to march from 9 a.m. to 4 p.m., around 1,200 members are expected to participate. The union expressed readiness for a walkout in June, citing the impasse in negotiations and emphasizing the importance of dialogue.
Following failed negotiations, Kakao’s labor union and management are in disagreement over the company’s performance-based incentive system. The union is advocating for the inclusion of restricted stock unit grants in the pool of performance-linked bonuses. This disagreement has granted the union and four others the right to collective action.
