Kakao Bank union to strike July 31 amid escalating labor disputes

The labor dispute within the Kakao group is intensifying as the Kakao Bank union announced it will commence a full-scale strike on July 31. This action marks a significant escalation in the ongoing conflict over wage negotiations.

Seo Seung-wook, head of the Kakao branch of the Korean Chemical, Fiber and Food Workers' Union, stated that the decision for a full-day strike at Kakao Bank was made due to the company's lack of proactive engagement in negotiations and the persistent gap in demands between labor and management. The union secured the right to strike after mediation efforts with the Gyeonggi Regional Labor Relations Commission on July 20 ended without resolution.

This strike authorization now extends to six Kakao affiliates, including Kakao, Kakao Bank, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games, granting them the right to engage in industrial action. The core of the dissatisfaction at Kakao Bank stems from internal complaints that employee compensation has been reduced despite the company achieving record-breaking financial results.

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Kakao Bank will hold a full-day strike on the 31st. The company has not actively engaged in negotiations, and the gap between labor and management has not narrowed.

Kakao Bank reported its highest-ever annual operating profit of 649.4 billion won and net profit of 480.3 billion won in 2023, representing increases of 7.0% and 9.1% respectively from the previous year. However, the union points to a continuous decline in wage increase rates since 2024, while the total compensation for executives (registered and non-registered) rose from 9.02 billion won in 2023 to 10.56 billion won in 2024. This disparity has led the union to question the fairness of the performance-based compensation system.

Kakao Bank stated it is closely monitoring the situation and is committed to finding an amicable solution through dialogue, ensuring service stability and operational continuity for its customers. Meanwhile, the union claims that wage negotiations with the parent company, Kakao, have effectively stalled after the company canceled scheduled meetings for the past two weeks without providing a reason.

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We are closely monitoring the situation and will strive to find a smooth resolution through dialogue. We will do our best to ensure service stability and operational continuity for our customers.