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Labor-Management Mediation Committee Steps In Amid Kakao Strike Crisis… "Public Inconvenience Must Be Avoided" [Only Edaily]

Kakao Compliance and Trust Committee to Launch in December 2023 Chairwoman Kim So-young, a former Supreme Court Justice, Delivers Direct Message to Both Labor and Management "A Platform Used by the Majority of the Public"... Emphasizing Social Responsibility First Concerns Over Impact on Service Stability and Reliability if Strike Goes Ahead

[Edaily Reporter Lee So-hyun] As the labor-management conflict at #Kakao escalates into an unprecedented strike, Kakao’s external independent oversight body, the “Compliance and Trust Committee” (hereinafter referred to as the Committee), has stepped in to resolve the situation by issuing an unusual message of mediation. This move stems from the assessment that the situation could go beyond mere internal wage negotiations and potentially undermine the “social trust” associated with Kakao as a national platform.

According to the IT industry on the 2nd, it has been confirmed that Kim So-young, Chair of Kakao’s Compliance and Trust Committee and a former Supreme Court Justice, recently delivered a strong, identical message urging action to both the management representative, Kakao CEO Jeong Shin-ah, and the labor representative, Seo Seung-wook, Chairman of the Kakao Labor Union (Crew Union).

In her message, Chairwoman Kim emphasized, “As Kakao is a leading platform used by the majority of the public, I expect both labor and management to approach the negotiations wisely, with the goal of minimizing inconvenience to the public.”

Kim So-young, Chair of Kakao’s Compliance and Trust Committee (Photo: AI reconstruction based on the Committee’s annual report)

Conc
erns Go Beyond Simple Wage Negotiations to ‘Service Stability’… Call for Social Responsibility
The Committee’s decision to issue such a sudden message was driven by a sense of crisis that the standoff between Kakao’s management and labor had moved beyond the realm of simple wage negotiations. This is because concerns are growing that if a strike were to materialize, the stability of major services—such as KakaoTalk, which is directly linked to the daily lives of the public—could be jeopardized.

The Commission does not have the legal authority to forcibly mediate or intervene in labor-management wage negotiations. It is an independent oversight body launched by Kakao in December 2023—the first of its kind in the platform industry—as part of its commitment to accept rigorous external oversight amid legal risks and a management crisis.

Therefore, analysts view this message as a “social appeal” that pressures both labor and management to compromise and reach an agreement under the banner of “the social responsibility of platform companies,” rather than direct labor-management mediation.

In particular, the direct mention of “minimizing public inconvenience” is interpreted to mean that the solution to the labor-management conflict should not be confined solely to the wage negotiation table but must also take into account service stability and user trust.


Comparison of Kakao’s stock price trends and key labor-management issues (Graphic by Reporter Kim Il-hwan)


With the quasi-regulatory commission—an external, independent oversight body—issuing an unusually direct mediation message, attention is now focused on whether Kakao’s labor and management, which had been heading toward a strike crisis, will engage in further negotiations.

Currently, the Kakao union has announced a four-hour partial strike and a rally in Pangyo on the 10th. Meanwhile, management maintains its stance of keeping the door open for dialogue and continuing negotiations.

The industry views this issue as extending beyond a simple wage negotiation. An IT industry official assessed, “Given that even the JUNSHIN Committee has stepped in to urge the minimization of public inconvenience, this conflict has moved beyond the level of wage negotiations between labor and management and has entered a phase that tests the stability of Kakao’s services and public trust.”

In particular, there is a prevailing sentiment that the fact the Labor Relations Commission has spoken out directly carries significant weight. Analysts note that this makes it clear the labor-management conflict at Kakao is no longer merely an internal matter, but an issue directly tied to the company’s responsibility and trust as a platform provider used by the majority of the public.

Another industry official noted, “The mere fact that Chairwoman Kim So-young, a former Supreme Court justice, has personally stepped in to mediate will place a considerable burden on both labor and management,” adding, “It also serves as a warning that if a strike leads to service disruptions or public inconvenience, neither side will be able to escape responsibility.”

Meanwhile, Kakao’s management and labor failed to reach an agreement during the second round of wage negotiation mediation held at the Gyeonggi Regional Labor Relations Commission on the 27th of last month. With the mediation breaking down, the union secured the legal right to strike and announced a four-hour partial strike scheduled for the 10th, involving five subsidiaries including Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games.

As labor and management at Kakao headquarters failed to reach an agreement during the second mediation session the previous day, and with the Kakao union having announced a strike for next month, a citizen walks past the Kakao Pangyo Ajit in Baekhyeon-dong, Seongnam, Gyeonggi Province, on May 28. (Photo by Reporter Lee Young-hoon)

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