Mediation failed on May 18 as wage talks collapsed across key units
Kakao CI
Kakao affiliates have entered the most severe labor-management conflict in company history, as wage negotiations between the two sides have failed to narrow the gap. Despite mediation efforts by the Gyeonggi Regional Labor Relations Commission, key affiliates have successively received rulings to halt mediation proceedings, making the prospect of union collective action increasingly real.
According to the information and communications technology (ICT) industry on May 18, DK TechIn and XL Games — two corporate entities — failed to reach an agreement during mediation proceedings held at the Gyeonggi Regional Labor Relations Commission that day. A ruling to halt mediation is issued when the positions of labor and management are deemed too far apart to bridge any further. With this ruling, the unions at the two companies have now secured the legal right to proceed with strike action and other forms of industrial action following a membership vote.
Earlier, the Kakao Chapter of the National Chemical and Food Industry Workers’ Union had applied for mediation with the Gyeonggi Regional Labor Relations Commission on May 7, after wage agreement negotiations at five corporate entities — including Kakao’s headquarters, Kakao Pay, and Kakao Enterprise — broke down. With Kakao Pay and Kakao Enterprise having already completed mediation proceedings, and the remaining affiliates joining them in failed mediation on May 18, the momentum for collective action appears to be spreading across the broader Kakao community.
The core issues in dispute center on the rate of salary increases and securing transparency in the performance bonus compensation system. The union has criticized management for unilaterally administering performance bonuses and ignoring excessive working hours, demanding fundamental systemic reform. In particular, the union contends that management’s repeated replacement of its bargaining representatives and its overall pattern of bad-faith negotiating have fueled the conflict.
The union plans to hold a large-scale rally at Pangyo Station Plaza in Seongnam, Gyeonggi on May 20, during which it will conduct a membership vote on whether to proceed with a strike. If the vote passes and a strike is actually carried out, it would mark the first such event in Kakao headquarters’ history. Industry observers expect that, given the nature of platform services, any actual strike would inevitably disrupt service operations.
Management is said to be maintaining its position that it cannot fully accept the union’s demands, citing uncertainty in the business environment. The union, however, is pushing back, insisting that fair compensation commensurate with performance and improvements to poor working conditions must come first. With both sides at a standoff, Kakao’s labor-management relations appear set to endure severe turbulence for the foreseeable future.
Jung Suk-yee
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