Kakao Grants Stock Options to All Employees "22 Million KRW Per Person" (Comprehensive)

Beom-su Kim, Chairman of the Kakao Board of Directors

[Asia Economy Reporter Buaeri] Following Naver, Kakao is granting stock options to all employees for the first time since its founding.

On the 4th, Kakao announced that it will grant 472,900 stock options to 2,506 employees. The exercise price is 114,040 KRW per share, totaling approximately 53.9 billion KRW. This amounts to about 22 million KRW per person.

Among them, 2,223 employees who have worked for more than one year will receive 200 shares each, while 283 employees with less than one year of service will receive 100 shares each. Starting this year, up to 600 shares per person will be granted by 2023.

The exercise period is from May 4, 2023, to May 4, 2028. After two years of continuous service, 50% can be exercised, and the remainder after three years.

A Kakao representative stated, "This signifies aligning with employees' motivation and the company's continuous growth."

The two major portals, Naver and Kakao, have recently experienced conflicts with employees over issues such as salary increases and performance bonuses in the IT industry. Both Naver and Kakao have introduced stock compensation plans.

Since 2019, Naver has granted stock options worth 10 million KRW annually to all employees and operates a program that provides up to 10% cash support (up to 2 million KRW per year) when employees purchase company shares.

Last month, Naver introduced a 'stock grant' system that provides company shares worth 10 million KRW immediately disposable to all employees annually over the next three years.

Unlike stock options, which have conditions such as period and price, these shares can be sold immediately for cash. Approximately 6,500 employees are eligible. The shares are granted in installments based on length of service, with the first payment scheduled for July.

This content was produced with the assistance of AI translation services.