Kakao Union Rally on the 26th... "Management Must Take Responsibility for Employment Disaster"

Joint Response to Successive Restructurings of Affiliates
Protest Letter Delivered to Center Director Kim Beom-su

The Kakao labor union is set to take collective action in response to employment instability such as voluntary retirement at its affiliates.

The Kakao branch of the National Chemical, Textile, and Food Industry Labor Union announced on the 24th that it will hold a rally titled "Condemn Irresponsible Management, Resolve Employment Instability: Kakao Community 1st Action, Save Kakao" on the 26th, involving members of the Kakao community union.

The Kakao Branch of the National Chemical Fiber Food Industry Labor Union announced on the 24th that it will hold the first Kakao Community Action, "Condemning Irresponsible Management and Resolving Employment Instability, Save Kakao," on the 26th, with participation from Kakao community members.
[Photo by Kakao Union]

Starting with the first action, they plan to launch a joint response to demand responsible management and resolve employment instability, and will deliver a protest letter to Kim Beom-su, head of the Kakao Future Initiative Center. They intend to hold collective actions such as picket protests involving union members to hold the Kakao community accountable for management failures.

The spark for the union’s movement is voluntary retirement. Among the affiliates, Kakao Enterprise, which has the largest deficit, announced a voluntary retirement plan on the 17th and is currently accepting applicants. They plan to provide severance pay, up to six months of base salary, and a support fund of 2 million KRW. Kakao Entertainment conducted a de facto voluntary retirement last month targeting senior employees with over 10 years of experience. Through the career transition program "Next Chapter," they offered severance pay, up to 15 months of base salary, and a support fund of 5 million KRW. The union explains that the damage caused by management failures is falling solely on the current employees.

The union plans to demand responsible management from the executives through the rally. They argue that the causes of repeated management disasters must be identified and fundamental system improvements are necessary. For example, Baek Sang-yeop, former CEO of Kakao Enterprise who resigned due to management failure, still maintains an advisory contract. Despite criticism over Ryu Young-jun, former CEO of Kakao Pay, who sold a large amount of stock after the company’s 2021 stock market listing and was appointed as an advisor after stepping down, no improvements have been made.

Seo Seung-wook, head of the Kakao labor union branch, said, "The crisis of the Kakao community is not a crisis of the crew but a failure of management and the community system. Since this is a problem that can recur anytime within the Kakao community, structural improvements and alternatives must be prepared."

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