Stocks in Focus

Kakao Faces First Strike Since Its Inception, Shares Down Over 1%… "Limited Impact on Services" [Featured Stocks]

[Edaily Reporter Kim Kyung-eun] #Kakao, which is experiencing its first strike since its founding, opened slightly lower in early trading on the 10th. However, as the impact on services is limited, the decline is modest.

According to MP Doctor, as of 9:06 a.m. today, Kakao is trading at 38,900 won, down 600 won (1.52%) from the previous trading day.

The Kakao labor union launched a strike today for the first time since the company’s founding. The Kakao branch of the National Chemical, Textile, and Food Industry Labor Union is conducting a partial strike from 10:00 a.m. to 3:00 p.m., with unions from five subsidiaries—Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games—participating. The union expects approximately 600 members to join the strike.

The union is demanding an end to employment instability arising from the sale of subsidiaries and restructuring, as well as improvements to the compensation system. Management and labor have been unable to bridge their differences regarding the introduction of restricted stock units (RSUs) and the scale of funds for performance-based bonuses.

However, the prevailing view is that the strike’s impact on major services such as KakaoTalk will be limited. Analysts note that since Kakao’s core services are largely automated and systemized, the likelihood of service disruptions due to a short-term partial strike is low. Kakao has also activated its response system, stating, “We will maintain service stability to ensure no inconvenience to users under any circumstances.”

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