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Kakao CI./ Kakao

Kakao issued an official apology after the breakdown of its wage negotiation mediation, while simultaneously underscoring that the performance-based compensation packages demanded by its labor union have reached an unsustainable level and must be structured with greater balance.

According to a corporate statement released on May 29, Kakao remarked, "Kakao has consistently engaged in the entire bargaining process in good faith to elevate the compensation stability of our crews. We have continuously strived to engineer the best possible framework that can be realistically accommodated within our current operational and business climate."

"The scale of the performance bonus package currently demanded by the Crew Union presents a significant institutional strain on corporate management when evaluated against our actual operating profit," Kakao asserted. "From the company's perspective, which must secure future growth engines and maximize shareholder value, this constitutes a financial burden that is realistically unsustainable to withstand."

The tech major further elaborated, "We firmly believe that performance-based rewards for our crews must be structured sustainably and balanced alongside considerations for future investment capacity and the enhancement of shareholder value."

"Kakao operates as a platform enterprise that links the daily routines of countless users while backing the businesses of small merchants and enterprise partners," the company added. "Safeguarding service stability to prevent any disruption for our users under any circumstances remains Kakao's paramount responsibility. The company will establish all necessary contingency frameworks and commit our full operational capacity to ensuring seamless service execution."

Prior to the announcement, Kakao failed to narrow its differences with the labor union during the second round of mediation held at the Gyeonggi Regional Labor Relations Commission on May 27, resulting in a formal decision to suspend mediation. Consequently, the headquarters' labor union has legally secured the right to engage in industrial action and is currently planning a walkout for next month. Speculation regarding a joint general strike is also mounting, as union branches at major subsidiaries—including Kakao Enterprise, Kakao Pay, DK Techin, and XL Games—have all overwhelmingly voted in favor of strike action.

                                                                                                              Choi In-gyu