A labor union at Kakao, the operator of South Korea’s popular messenger service, is in a second round of mediation with the Gyeonggi Regional Labor Relations Commission. This follows unsuccessful wage talks on May 18. If mediation is suspended, Kakao’s unionized members may strike, along with affiliates’ unions. The unions had previously voted in favor of a walkout due to failed wage negotiations.
The dispute reflects wider demands for performance-based bonuses and profit sharing in South Korean firms, influenced by a recent Samsung Electronics labor-management conflict. Kakao’s union is pushing for restricted stock unit grants to be part of the performance-based incentive pool. Meanwhile, Samsung Electronics’ unionized workers have approved a wage agreement with significant bonuses for chip workers, preventing disruptions to the global supply chain.
In a vote, the majority of Samsung Electronics’ union members endorsed the deal, ensuring its implementation. The agreement, including a bonus package, was signed by both parties, with management committing to enhance the company’s global competitiveness. Yeo Myeong-gu, head of the Device Solutions division’s People Team, emphasized joint efforts to boost global competitiveness following the agreement’s conclusion. The deal averted an 18-day strike planned at the memory chip giant.
