Kakao's financial affiliate Kakao Pay faces its first strike decision in nine years since its founding. If the second round of mediation between labor and management at Kakao headquarters breaks down, four affiliates including Kakao Pay will go on strike alongside the headquarters. The labor union is said to be demanding a performance bonus equal to 13%–15% of annual operating profit.
On the 27th, labor and management at Kakao headquarters will hold a second mediation meeting from 3 p.m. at the Gyeonggi Regional Labor Relations Commission (Gyeonggi Labor Commission). If the second mediation also breaks down, four affiliates that have already secured the right to strike—Kakao Pay, Kakao Enterprise, DK Techin, and XLGAMES—will launch a strike with Kakao headquarters.
Earlier, on the 20th, unions at five entities, including Kakao headquarters and its affiliates, formalized participation in a strike through a vote. Four affiliates excluding Kakao applied for mediation to the Gyeonggi Labor Commission after wage talks collapsed, but that mediation was also put on hold. An industry official said, "Whether a strike actually happens ultimately depends on the headquarters, so neither labor nor management at the affiliates were proactive in the mediation process."
The key issue the Kakao union is demanding from management is ultimately the performance bonus. An industry official said, "Management proposed a level equal to 10% of annual operating profit by combining cash and treasury shares. But the union is asking for 13%–15%." Management also proposed voluntary retirement to resolve XLGAMES' management difficulties, but the union says it will strike if voluntary retirement is implemented.
The outcome of the second mediation between labor and management at Kakao headquarters that day is expected to affect KakaoBank, which is currently in wage talks. If mediation reaches an agreement, KakaoBank's wage talks are likely to wrap up smoothly by reflecting the terms. If it collapses, however, KakaoBank could join the strike.