Kakao Extends Labor Commission Mediation Period... Headquarters Averts Immediate Strike Risk (Comprehensive)

Mediation Period Extended by Ten Days... "Efforts to Reach Agreement Continue"

Second Mediation Session Set for 27th; Union Gains Right to Strike if Talks Fail

No Agreement Reached at DK Techin and XL Games

The labor-management council at Kakao's headquarters has left room for continued negotiations by extending the mediation period during the mediation process held at the Gyeonggi Regional Labor Relations Commission. However, mediation procedures for two Kakao affiliates held on the same day broke down.

At around 10 p.m. on the 18th, Kakao announced, "The mediation period has been extended by mutual agreement between labor and management," adding, "We will continue our efforts to reach an amicable agreement."

Kakao Pangyo Ajit in Seongnam, Gyeonggi Province. Photo by Jinhyung Kang aymsdream@

The labor and management of Kakao engaged in mediation for nearly six hours from 4:30 p.m. on this day, but were unable to reach a conclusion, resulting in the extension of the mediation period. According to the procedures of the regional labor commission, if both parties agree, the mediation period can be extended by up to ten days from the date of application. The second mediation meeting between Kakao's labor and management is scheduled for 3 p.m. on the 27th.

In contrast, the labor-management councils of two affiliates—DK Techin and XL Games—who also underwent mediation at the Gyeonggi Regional Commission on the same day, failed to reach an agreement, and the mediation was discontinued. Discontinuation of mediation is a procedure undertaken when the difference in positions between labor and management is deemed too great to reach an agreement. When mediation is discontinued, the union obtains the right to take industrial action, such as striking, after a vote among union members.

Previously, amid ongoing labor-management conflict over the performance compensation system, the Kakao branch of the Korean Federation of Chemical, Textile, and Food Industry Workers' Unions submitted a mediation application to the Gyeonggi Regional Commission on the 7th, with unions from five Kakao legal entities—Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games—participating. Among these, the unions at Kakao Enterprise and Kakao Pay secured the right to take industrial action after halting collective bargaining mediation procedures on the 14th and 15th, respectively.

With the extension of the mediation period, labor and management have left the door open for negotiations until the additional mediation meeting at the Gyeonggi Regional Commission. If labor and management at Kakao's headquarters fail to reach an agreement, the Kakao union could stage its first-ever strike since its founding. The two sides currently remain at odds over the structure of compensation programs, including performance bonuses. The union plans to announce its future course of action at a Kakao union rally to be held at Pangyo Station Square in Seongnam, Gyeonggi Province on the 20th.

The union cited the unbalanced distribution structure for performance, as well as unilateral decision-making by management, as causes of the conflict. It also mentioned issues such as excessive working hours, insufficient response to allegations of workplace harassment, and the forced consent to digital forensics targeting employees. In particular, the union rejected the view that the breakdown of negotiations was due to its demand for performance bonuses equivalent to 13-15% of operating profit. According to the union, the operating profit-linked bonus system was merely one of several options discussed during negotiations, and the key issues at the heart of the breakdown were not the size of the bonus itself, but rather the transparency of compensation standards, the structure of performance distribution, and improvements to the overall compensation system, including long-term service rewards.

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