Kakao union secures strike rights after talks collapse

May 28, 2026, 08:23 am

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Seo Seung-wook, head of the Kakao labor union branch, enters a mediation meeting at the Gyeonggi Regional Labor Relations Commission in Suwon on May 27./Yonha

Labor negotiations between Kakao management and its union collapsed after a second round of mediation talks at the Gyeonggi Regional Labor Relations Commission on May 27, paving the way for what could become the company’s first-ever strike.

According to industry officials, the two sides failed to narrow differences over key issues during more than eight hours of negotiations that began at 3 p.m. The commission ultimately suspended mediation close to midnight, allowing the union to legally secure the right to strike.

The Kakao branch of the Korean Chemical & Textile Food Workers’ Union said it plans to launch a strike next month, although specific details are still under discussion. The union added that “the door for dialogue remains open.”

The dispute centers on wage increases and the company’s performance compensation system. The two sides have been at odds over a proposal to distribute 13 to 14 percent of last year’s operating profit as bonuses and whether restricted stock units (RSUs) worth 5 million won should be included in performance-based compensation.

The union has accused management of applying opaque compensation standards to employees while awarding executives bonuses worth billions of won. It has demanded that RSUs be reflected in employee compensation packages.

Management, meanwhile, has cited worsening internal and external business conditions and the need for tighter cost controls. The company argues that rising labor costs could weaken long-term competitiveness at a time when growth in the platform industry is slowing while investment in artificial intelligence continues to increase.

Industry observers warned that an actual strike could disrupt Kakao’s planned rollout and advancement of AI services scheduled for the second half of the year.

One industry official said higher companywide compensation standards could significantly increase fixed costs on a consolidated basis. The official also warned that if core developers and technology personnel participate in collective action, delays in launching new services and concerns over operational stability could follow.

Kakao said it would continue efforts to reach an amicable agreement during the remaining negotiation period.

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