Kakao Union: "Work Schedule Changed 4 Times in a Year... Want to Meet Kim Beom-su"

"Demanding Remote Work and Joining Union, Not True"
"The Issue Is Frequent Changes and Lack of Communication, Not Attendance"
Calls for 'Redefining Leadership and Direct Dialogue with Kim Beom-su'

Seo Seung-wook, head of the Kakao branch, is making a presentation at the 'Crew Union Responsibility and Promise 2023' press conference on the 17th.

[Asia Economy Reporter Seungjin Lee] The Kakao labor union has demanded a meeting with Kim Beom-su, head of the Kakao Future Initiative Center. Recently, the Kakao union, whose membership rate has nearly reached a majority due to reasons such as work system restructuring, has called for improvements to the unstable management environment caused by a lack of leadership.

Kakao’s Union Membership Rate Nears Majority

The Kakao branch of the Korean Confederation of Trade Unions’ National Chemical, Textile, and Food Industry Union held a press conference titled ‘Crew Union Responsibility and Promise 2023’ on the 17th at Kakao Pangyo Ajit in Gyeonggi Province. The union announced its future activity directions, issues and challenges within the Kakao community, and demands for responsibility and promises.

Seo Seung-wook, head of the Kakao branch, explained, “It is not true that the union membership rate recently surged from 10% to 50%. The membership rate also rose during previous issues such as the mobility division sale and management changes. It is the result of complex factors over a long period.”

Earlier, Kakao announced a work system restructuring prioritizing office attendance starting in March. Reports followed that union membership surged among employees opposing office attendance, which the union refuted. According to union data, union membership significantly increased during incidents such as the Kakao Pay block deal crisis at the end of 2021 and the Kakao Mobility sale in June last year.

Currently, there are 4,000 union members across the Kakao community (affiliates), with 1,900 members at Kakao itself. The union believes that achieving a majority under the Labor Union Act is certain. If union members exceed half of Kakao’s total employees, the union can exercise collective bargaining rights with management. However, the union added that confirmation is needed regarding majority status under the Labor Standards Act.

On the 20th, as Kakao CEO Namgung Hoon resigned due to a failure caused by a data center fire and the company entered an emergency management system, employees are arriving at work in the lobby of Kakao Ajit in Seongnam, Gyeonggi Province.
Seongnam ? Photo by Kang Jin-hyung aymsdream@

Fundamental Issues Are Frequent System Changes and Lack of Communication

The union cited frequent system changes and lack of communication from management, rather than simple changes in the work system, as the main reasons for the sharp increase in union membership.

Seo said, “There have been as many as four major work system changes within a year. Announcing a work system that allows working regardless of location, then switching to an office-centered system within six months, causes strain on employees. One community announced a work system less than a week before implementation, which increased confusion.”

In fact, in November 2021, Kakao announced ‘Flexible Work System 2.0,’ allowing organizational units to choose between office and remote work. Six months later, Kakao introduced the ‘Metaverse Work System,’ centered on voice connections regardless of location. This system was scheduled to be implemented across all communities in January this year. At that time, Kakao applied hot-desking and reduced cafeteria space in the new headquarters building in preparation for the work system.

One month after announcing the Metaverse Work System, Kakao introduced the ‘Pilot Work System,’ which included a biweekly ‘Nolgeum (Playing Friday).’ Six months later, in December last year, Kakao announced the ‘KakaoON’ work system, overturning previous systems. This system reduced Nolgeum from biweekly to once a month and prioritized office attendance.

Lack of Leadership... Union Wants Meeting with Center Head Kim Beom-su

The union called for redefining Kakao’s leadership and requested a meeting with founder Kim Beom-su.

Seo said, “Kakao has seen many leadership changes over the past year, and work systems and other policies have been affected each time. There are doubts about the verification and procedures of leadership capabilities.” Kakao has had five CEO changes since 2018.

He added, “The scope of management itself is ambiguous, and the range of non-registered directors besides the CEO is unknown. Some affiliates’ management are regular employees, but this is not an employment form that can bear executive responsibility.”

The union advocates strengthening communication and institutionalizing various management changes. Seo emphasized, “Frequent executive replacements and failure to complete terms stem from insufficient executive appointment processes. Institutionalization should be completed within this year to enable stable leadership operation.”

He continued, “I have never had a conversation with Center Head Kim or major shareholders. Despite multiple proposals to discuss overall issues, no discussions have taken place. I want to talk about Kakao’s direction, not detailed management matters.”

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