Kakao faces second strike as performance pay dispute continues

Kakao's labor union initiated its second strike on May 29, as negotiations with the company over wage disputes remain unresolved after nearly two months. Approximately 75% of the union members across five affiliated companies, including Kakao, Kakao Pay, and Kakao Enterprise, have applied to participate in the full-day strike.

The central issue of contention is the company's decision to award Restricted Stock Units (RSUs) worth about 5 million won to employees with over a year of service in April. The union argues that these awards, decided upon a year prior, should not be retroactively applied as compensation for the previous year's performance. This RSU system was introduced last year to address issues with stock options that arose from a "money grab" controversy involving Kakao Pay executives in 2021.

Kakao maintains its position that the RSUs are part of a mid- to long-term performance incentive program. The company stated it is implementing a real-time response system to ensure stable service operations and minimize any impact on customers. Kakao also expressed its commitment to ongoing dialogue with the union to reach a swift agreement.

This strike follows a partial four-hour strike on May 10, which saw about 1,500 participants. Unlike the previous action, no offline rally is planned for this strike. Union members are participating by taking annual leave or setting their status to 'off' in the company's internal systems.

“

We are operating with a real-time response system to minimize service disruptions and are committed to continued dialogue with the union.