Kakao Faces Looming Strike as Strike Vote Passes at Five Affiliates (Comprehensive)

Four Kakao Affiliates Including Kakao Pay and Kakao Enterprise Move Toward Strike
Headquarters Union Awaits Additional Mediation Meeting
First-Ever Strike Threat at Kakao Headquarters Since Founding

The strike vote conducted across five subsidiaries within Kakao Group has passed in favor. As a result, labor unions at four subsidiaries—excluding the Kakao headquarters—are now able to initiate strikes or other industrial actions. The labor union at Kakao headquarters is also likely to decide on whether to strike depending on the outcome of upcoming mediation sessions.

The Kakao Branch of the National Chemical Fiber Food Industry Labor Union (Kakao Union) announced at a resolution rally held at Pangyo Station Plaza in Seongnam, Gyeonggi-do, on May 20, "As of 11 a.m. today, strike votes at all five subsidiaries have passed with a majority in favor."

Members of the National Chemical, Fiber and Food Industry Labor Union Kakao Branch (Kakao Labor Union) held a "2026 Collective Bargaining Victory Rally" on the 20th at the Pangyo Station Plaza in Seongnam, Gyeonggi Province, shouting slogans. Photo by Yonhap News

The Kakao Union further stated, "Now that we have secured the legal right to industrial action, we will share our future plans for collective action."

Accordingly, four subsidiaries—Kakao Pay, Kakao Enterprise, DK Techin, and XL Games—have entered the stage of collective action, including strikes. The labor and management of these four subsidiaries have already secured the right to industrial action after the Gyeonggi Regional Labor Relations Commission (Gyeonggi RLRC) decided to suspend mediation. The suspension of mediation is a procedure invoked when the gap between labor and management's positions is too wide for agreement, after which the union can secure the right to industrial action, such as striking, through a vote by its members.

Kakao headquarters' labor and management are scheduled to hold a second mediation session at 3 p.m. on May 27. At the first mediation session, held at the Gyeonggi RLRC on May 18, both sides agreed to postpone the mediation date. If no agreement is reached at the upcoming session, the Kakao headquarters union is also expected to proceed with securing the right to industrial action.

At the rally, Seo Seungwook, head of the Kakao Union branch, announced four joint demands: management reform and responsible management, employment stability and the establishment of a community safety net, fair performance rewards and profit sharing, and the creation of a universal labor environment and welfare system. Seo stated, "These joint demands are separate from the ongoing wage negotiations at each subsidiary and are a separate subject for bargaining," adding, "The specific details will be finalized after discussion with union members and then communicated to management."

Previously, amid labor-management conflict over the performance reward system, the Kakao Union submitted a mediation request on May 7 to the Gyeonggi RLRC on behalf of unions from five subsidiaries: Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games.

The union has cited the unbalanced structure of performance distribution and the management's unilateral decision-making process as the causes of the conflict. They also mentioned issues such as excessive working hours, inadequate response to workplace bullying allegations, and the coercion of forensic consent from employees.

In particular, the union refuted the perspective that the deadlock in negotiations was solely due to the demand for a performance bonus at the level of 13–15% of operating profit. According to the union, the operating profit-linked bonus system was only one of several proposals discussed during negotiations, and the core issues leading to the breakdown were not the size of the bonus itself, but rather the need for greater transparency in compensation criteria, improvement in the structure of performance distribution, and better rewards for long-term service—in short, an overhaul of the overall compensation system.

If the Kakao headquarters union secures the right to industrial action and actually goes on strike, it will mark the first-ever strike at Kakao headquarters since the company's founding. Previously, in 2024, wage and collective bargaining talks also broke down, prompting the union to file its first mediation request with the RLRC. However, after reaching a tentative agreement—including the restoration of one day per week of remote work—the union did not proceed with an actual strike. In June of last year, a breakdown in wage and collective bargaining at Kakao Mobility led to a partial strike lasting about two hours.

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