Kakao Bank Union Launches First-Ever Strike by Internet Bank; Services Unaffected

Kakao Bank's labor union initiated its first strike on July 31, a landmark event as the first work stoppage by a union at a South Korean internet-only bank. The action stems from a breakdown in wage negotiations, particularly concerning performance-based bonuses and salary increases. Over 700 employees, representing approximately 40% of Kakao Bank's 1,800-strong workforce, participated in the strike. However, the union organized the action by having members take annual leave, ensuring that daily banking operations continued without interruption. No separate rallies were held, and the union is currently discussing future protest methods. The dispute arose after Kakao Bank and its union failed to bridge their differences during this year's wage talks. The Gyeonggi Regional Labor Relations Commission suspended mediation on July 20, citing the significant gap between the parties' positions. Following this, the union proceeded with a strike vote. Despite the strike, Kakao Bank assured customers that services would remain unaffected due to the nature of internet-only banking, which lacks physical branches. The bank stated its commitment to finding a resolution through continued dialogue.

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We are discussing the methods and timing of future struggles internally.