As the bonus war that began at Samsung Electronics spreads across major conglomerates such as Hyundai Motor, Hanwha, and LG, a Kakao affiliate in the financial sector has declared it will join the fight. Kakao Pay voted in favor of a strike, and KakaoBank could join if the ongoing wage talks break down.
According to the financial sector on the 22nd, KakaoBank management and the labor union are currently negotiating wages. A representative of the Kakao union Crew Union said, "KakaoBank is still in talks, and whether it will join a strike if negotiations collapse has not been decided." However, Kakao headquarters and affiliates that voted for a strike have already acted after wage talks broke down, so KakaoBank could join as well.
Kakao labor and management remain apart over what percentage of annual operating profit to allocate for employee bonuses going forward. An industry official familiar with the matter said, "Management proposed paying a bonus equivalent to around 10% of operating profit by combining cash and treasury shares. But the union is demanding more," adding, "With both sides firmly opposed, a deal does not look easy." The gap is said to be small on a proposal to raise annual salaries by the high-6% range.
As Kakao delivered strong results, demands for higher bonuses intensified. Kakao posted first-quarter revenue of 1.9421 trillion won and operating profit of 211.4 billion won this year. Both revenue and operating profit were the highest for any first quarter. Kakao Pay recorded net profit of 32.2 billion won, and KakaoBank earned 187.3 billion won in net profit in the first quarter. Both were quarterly records.
Earlier, union members at five entities—Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XLGAMES—formalized their participation in a strike through a vote on the 20th. Excluding Kakao, the four affiliates immediately filed for mediation with the Gyeonggi Regional Labor Relations Commission following the breakdown of wage talks, and with mediation suspended, they have secured the right to strike.
Kakao headquarters, after a prolonged standoff at the first mediation session held on the 18th, postponed the mediation date to the 27th. If the second mediation collapses, Kakao headquarters would also secure the right to strike, allowing all five entities to launch a strike at once.
By contrast, rival NAVER completed wage talks on the 11th, eliminating the possibility of a strike. An industry official said, "Kakao stumbling due to labor-management conflict could be a boon for its competitor."