Kakao on the 29th said in an official statement that the head office labor union's demand in this year's wage and performance compensation talks to pay 13%–14% of last year's operating profit as bonuses is "a level that would place a significant burden on the company's management when considered on an operating profit basis."
Kakao labor and management held a second mediation session for wage talks 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 announced a strike next month.
Kakao said, "We have faithfully engaged throughout the talks to enhance stability in employee compensation and have worked to derive the best plan the current business conditions can accept, but from the company's standpoint—needing to secure future growth engines and enhance shareholder value—the performance compensation plan demanded by the union is, in practical terms, an intolerable burden."
It also emphasized the aspect of enhancing shareholder value. Kakao said, "To our users, shareholders, and partners who have shown great interest in Kakao, we sincerely apologize for causing concern due to the recent wage negotiations," while adding, "Kakao is a corporations in which many shareholders have invested believing in its future growth value, and we think performance compensation for employees must balance future investment capacity and shareholder value enhancement, and be carried out at a sustainable level."
The company also said it will ensure that the breakdown of mediation does not disrupt service continuity. Kakao said, "Kakao is a platform corporations that connects the daily lives of countless users and supports the businesses of small merchants and partners," adding, "No matter the situation, safeguarding service stability so that users experience no inconvenience is a key responsibility for Kakao, and the company will establish the necessary response system and do its utmost to operate services stably."
It also stressed what the company must pursue for the future amid intense internal and external competition. Kakao said, "Kakao is currently competing with global AI big tech companies with massive capital," adding, "At a time when we must concentrate all capabilities for survival and the future, labor and management cannot be separate in the process of overcoming difficulties and safeguarding the trust of shareholders and users." It continued, "We will keep the door to dialogue open until the end and make every effort to ensure there is no impact on shareholders, partners, and stakeholders," and "Kakao will press on tirelessly toward the future."