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Kakao CEO Shina Chung bows her head in apology after the company's wage negotiations failed to reach an agreement during labor mediation. / Photo courtesy of Kakao

Kakao CEO Shina Chung issued an internal message to employees apologizing for the failure of labor mediation to reach a final agreement on wage negotiations, while simultaneously rolling out a restructuring plan for the company's organizational operating framework. Against the backdrop of protracted labor management friction, the company appears to be accelerating its institutional realignment to sharpen its user-centric service competitiveness.

According to industry sources on May 28, CEO Chung posted an announcement on the corporate intranet in the morning, outlining her stance on the fact that the overnight wage mediation between management and the labor union concluded without a breakthrough. "I am sincerely sorry for our inability to swiftly resolve various anxieties and uncertainties," Chung stated. "I weigh heavily on my mind that as negotiations have dragged on, the waiting period for our crew members has likewise grown prolonged." She added, "While we have yet to sufficiently narrow the gap between our respective positions, I will make every effort to once again combine our strengths as a unified Kakao through continued dialogue."

Concurrently, Kakao is pushing forward with organizational restructuring aimed at elevating its user-centric service edge. The company's preexisting overall product unit will be split and streamlined into two core pillars: 'KakaoTalk' and 'Business.' Additionally, previously decentralized design teams will be integrated into a unified division to maximize domain expertise and collaborative efficiency.

Most notably, a new 'User First TF' (Task Force) will be established directly under the KakaoTalk organizational wing. Conceived to amplify communication with users and elevate the comprehensive execution quality of its services, this unit will serve as the spearhead for Kakao to further reinforce its user-first operational model. The granular restructuring steps are slated to be implemented in consecutive phases.

                                                                                                             Kim Young-jin