Overview
- Mediation between Kakao's unions and management failed on Wednesday, May 27, giving unionized workers at the company and four affiliates legal authority to strike.
- Union leaders say they plan a full-scale strike in June and have scheduled a demonstration for June 10 around Kakao's Pangyo headquarters.
- The core dispute centers on how performance pay is designed, with unions demanding restricted stock units be included in the official incentive pool and accusing management of uneven executive bonuses.
- Kakao's CEO Chung Shin-a issued an internal apology on May 28 and the company's chief product officer is reported to be preparing to leave as management says it will keep negotiating.
- The fight reflects a wider trend in South Korea over profit-sharing and equity pay, following recent high-profile deals such as at Samsung, and could affect Kakao's messaging and fintech services if staff walk out.