Kakao Jeju headquarters /Courtesy of News1

Kakao labor and management have failed to find common ground in the 2026 wage talks and are undergoing Labor Relations Commission mediation. The union is said to have demanded performance bonuses equal to 13%–15% of operating profit.

According to the industry on the 10th, the Kakao chapter of the Korean Chemical, Textile and Food Workers' Union recently applied for mediation with the Gyeonggi Regional Labor Relations Commission. The application involved four union locals, including those at Kakao, Kakao Pay, Kakao Enterprise, and DK Techin.

Differences are said to have emerged between labor and management over performance bonuses. The union is reportedly demanding that 13%–15% of operating profit be paid as performance bonuses. Given that Kakao's standalone operating profit last year was 440 billion won, that would amount to about 15 million won per employee, assuming a workforce of 4,000.

A Kakao official said, "The company has faithfully held discussions with the labor union regarding the 2026 wage negotiations, but we were unable to reach a final agreement on the detailed compensation structure and have entered the mediation process," adding, "We will faithfully participate in the Labor Relations Commission mediation to be held going forward." The official added, "We will always keep the channel of communication with the union open and do our utmost to reach an amicable agreement."

Since SK hynix set 10% of operating profit as the performance bonus pool last year, more unions have been demanding that a set portion of operating profit be allocated for bonuses. The Samsung Electronics union is demanding 15% of operating profit, and the LG Uplus union is demanding 30%.

※ This article has been translated by AI. Share your feedback here.