Chung Shin-a, the chief executive of Kakao, apologized to employees over the breakdown of wage talks between labor and management even after mediation by the labor commission.
On the morning of the 28th, Chung posted a notice on the company board, saying, "I sincerely apologize for not being able to quickly resolve various concerns and uncertainties," and noted, "As the talks drag on, the wait for the crew is also getting longer, which I take seriously."
Kakao labor and management held a second round of wage bargaining mediation at the Gyeonggi Regional Labor Relations Commission on the 27th but failed to reach a final agreement. The union, having secured the legal right to strike, has warned of a walkout next month.
Chung said, "Although we have yet to sufficiently narrow the gap in our positions, we are ultimately crew members who must work together within Kakao and move in the same direction," adding, "Through dialogue, we will work harder so that we can rally as one Kakao again."
Chung said, "This is a time when we need an operating framework that the company can stabilize, reset standards from a service perspective, and align our direction together," and unveiled a reorganization plan.
Kakao will split the existing product organization into "KakaoTalk" and "business," and integrate the dispersed design organizations to enhance expertise in each area and boost collaboration synergy through a restructuring. Within the KakaoTalk organization, it will launch a "User First TF" to strengthen communication with users.
She said, "This is a time when we need an operating system that can more effectively build user-centered services," adding, "We plan to proceed with detailed organizational changes gradually."