Unionized members at Kakao Corp. held their first strike, demanding higher bonuses and profit sharing. The union seeks 13-14% of last year's operating profits as incentives and inclusion of restricted stock units in the bonus pool, while management cites a "huge burden."
This marks the first strike in Kakao's history, highlighting growing labor tensions within South Korea's tech sector over compensation structures and executive pay disparities.
Unionized members at Kakao Corp. staged their first walkout in the company's history on Wednesday, demanding higher bonuses and profit sharing. The strike, involving approximately 1,500 members from five units including Kakao Pay and Kakao Enterprise, took place near the company's headquarters in Pangyo, south of Seoul.
The union is reportedly seeking 13 to 14 percent of last year's operating profits as performance-based incentives and wants restricted stock units to be included in the official bonus pool. Union members have argued that management is offering excessive compensation to executives, citing a 32.2 percent average wage increase for executives from 2024 to 2025, compared to a 2.9 percent increase for employees during the same period.
Kakao management has stated that the demands could place a "huge burden" on the company's operations. Industry watchers expect the walkout to have a limited impact on Kakao's services, including its popular messenger app KakaoTalk, as core services are automated and essential personnel remain on duty.
The union announced plans for another walkout, a "Log-off day," on June 29.