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🇰🇷 South Korea /Elections & Politics

Kakao union protests company split, demands joint negotiations

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Kakao's labor union plans a joint action on August 26 in protest of the company's decision to split into two entities.
  • The union argues that the split will complicate decision-making and potentially dilute workers' rights and bargaining power.
  • They are demanding a joint negotiation process to ensure accountability, job security, fair compensation, and a community safety net.

Kakao's labor union is preparing for a joint action on August 26 to protest the company's decision to split into two separate entities. The union argues that the proposed division will not inherently improve Kakao's situation and that the company must first address its repeated management failures and unaccountable decision-making structures.

It is difficult to be optimistic that Kakao will change solely with a new governance structure. We must first correct the repeated management failures and the structure of unaccountable decision-making.

— Kakao UnionIn a statement titled 'The company may split, but responsibility cannot be split,' criticizing Kakao's decision to divide.

The company's board of directors resolved to split Kakao into a new AI-focused platform company, tentatively named 'Kakao AI,' and a surviving entity, 'Kakao X,' which will oversee financial, content, and mobility affiliates. The union expressed concern that the split will lead to restructuring, sales, mergers, and business transfers, raising questions about how workers' rights will be protected.

Union representatives stated that most employees were not adequately informed about their future prospects during the decision-making process for the split, and that there was no prior consultation with the union. They believe that as the decision-making structure becomes more complex post-split, workers' bargaining power should not be fragmented across different corporate entities.

What is important is how workers' rights will be protected during restructuring, sales, mergers, and business transfers after the split.

— Kakao UnionExpressing concerns about the impact of the corporate split on employees.

To counter this, the union is pushing for joint negotiations. Their demands include establishing minimum standards for responsible management, employment stability, fair compensation, and a safety net for the entire Kakao community. Ahead of the planned demonstration, the union will hold an open online session on August 24 to gather opinions from members regarding the new corporations and the split.

The decision-making structure will become more complex due to the split, so workers' bargaining power should not be scattered across each corporation.

— Kakao UnionArguing for a unified negotiation approach post-split.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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