Kakao Meets All Kakao Mobility Employees, Union Firmly Opposes Sale

Members of labor and civil society organizations, including the National Substitute Driver Labor Union and the Kakao Community Labor Union Crew Union, held a press conference on the morning of the 11th at Sangyeonjae in Jung-gu, Seoul, to oppose the sale of Kakao Mobility to speculative capital MBK.

[Asia Economy Reporter Seungjin Lee] The Community Alignment Center (CAC), which serves as Kakao's control tower, is preparing to hold a communication session with employees for the first time regarding the sale of Kakao Mobility. This move appears to be an effort to persuade employees again as opposition to the sale by the Kakao labor union has intensified, with over 70% of Kakao Mobility employees joining the union.

According to industry sources on the 12th, Kakao CAC announced last week through an internal notice at Kakao Mobility that it would hold a session to communicate with all employees. Although specific schedules, methods, and participants have not been decided, since there are about 700 employees at Kakao Mobility alone, it is expected that the message will be delivered online.

Over the past month and early this month, CAC held two rounds of consultations with the Kakao labor union. At that time, CAC expressed its intention to consider the sale, so it is expected to convey similar opinions during the meeting with all Kakao Mobility employees. Additionally, Bae Jae-hyun, Kakao's Chief Investment Officer (CIO), stated in an internal notice last week that "we are considering a transition to a second-largest shareholder through a sale of around 10% of shares."

As CIO Bae prioritized informing Kakao employees about the direction of the share sale, the core stakeholders in the sale issue?Kakao Mobility employees?experienced delays in receiving information, which reportedly increased dissatisfaction within Kakao Mobility. In response, more than 1,000 people participated in the anti-sale signature campaign initiated by the Kakao labor union last week, and the union membership rate at Kakao Mobility exceeded 70%. Seeing this consolidation of opposition among Kakao Mobility employees, CAC appears to have acted urgently.

Kakao plans to continue ongoing consultations with the Kakao labor union separately from the communication session targeting all Kakao Mobility employees. Although a third round of talks was planned with the Kakao labor union during the transition, the situation is currently fluid.

Meanwhile, the Kakao labor union held a press conference the day before to reiterate its opposition to the sale of Kakao Mobility. Seo Seung-wook, head of the Kakao labor union branch, said, "The fact that Kakao Mobility has become the center of social conflict is not inevitable but due to a failure in management judgment," adding, "There was insufficient social consensus on controversial policy decisions such as the monetization of pro services and the increase in smart call fees."

He continued, "Deciding to sell Kakao Mobility and evade social responsibility is inconsistent," criticizing, "While outwardly talking about coexistence, responsibility, and communication, they were secretly proceeding with the sale?this is the height of duplicity."

Seo questioned, "Kakao says it is a 'share adjustment,' not a 'sale,' but if the major shareholder changes to a private equity fund and management rights are transferred, what else should it be called if not a sale?"

Going forward, the union plans to continue the signature campaign and picketing, as well as discuss attaching promotional materials and banners for Kakao’s new headquarters and holding a large-scale rally at the Pangyo Square in front of the building.

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