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Kakao Enterprise has secured the right to take industrial action after the Gyeonggi Provincial Labor Relations Commission halted mediation. Labor-management tensions are spreading as collective-bargaining talks at several major Kakao affiliates have repeatedly broken down.
On May 14, the Kakao branch of the National Chemical, Textile and Food Industry Workers’ Union said Kakao Enterprise’s labor and management failed to reach an agreement during mediation at the Gyeonggi commission. The commission concluded the parties were too far apart and suspended the process.
The commission suspends mediation when it determines further efforts are futile. As a result, the Kakao Enterprise union has obtained the legal authorization to carry out sick-outs, strikes or other industrial actions. The union said it will decide whether to strike after an internal vote.
Labor and management at Kakao Enterprise negotiated under the Gyeonggi commission’s direction from about 10 a.m. for roughly two and a half hours but did not reach a deal. Kakao Enterprise completed the mediation process before the other four companies in the Kakao group.
Earlier, Kakao, Kakao Pay, DK Techin and XL Games also requested mediation from the Gyeonggi commission after their collective-bargaining talks collapsed. The commission plans mediation for Kakao Pay on May 15 and for Kakao Corp., XL Games and DK Techin on May 18.
Sources said the parties failed to narrow their differences over bonus structures, wage increase rates, long-service rewards and minimum hourly wages during negotiations. The union is demanding a structured compensation system that allocates at least 13% of operating profit to bonuses and grants stock options to long-tenured employees.
The Kakao union plans to hold a rally at Pangyo Station Square on May 20. The union also sought mediation from the Gyeonggi commission in 2024 after collective-bargaining talks broke down.
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