Kakao Union Seeks Mediation After Failed Negotiations: What’s at Stake?

Translation result By Hong Seung-hee, Herald Economy — The Kakao workers’ union has filed for mediation with the Gyeonggi Provincial Labor Relations Commission after collective-bargaining talks with management collapsed.

According to ICT industry sources on the 10th, the Kakao branch of the National Union of Chemical, Textile and Food Industry Workers submitted mediation requests covering four corporate entities — Kakao, Kakao Pay, Kakao Enterprise and DK Techin — after negotiations broke down.

Negotiations stalled over the design of a performance-bonus scheme, with the union and management unable to bridge their differences. That impasse prompted the union to seek mediation.

Observers inside and outside the IT sector say the union’s demands were influenced in part by SK Hynix’s decision to allocate 10% of operating profit to performance bonuses.

If mediation at the labor commission fails, the union may move to formal dispute procedures. A strike is not automatic; any decision to strike will depend on the mediation outcome and the union’s internal procedures.

The Kakao union previously sought mediation with the labor commission in 2024 after earlier collective-bargaining talks collapsed.