[Edaily Reporter Lee So-Hyun ] Kakao(035720) The labor union plans to proceed with its second collective action, “Logout Day,” on the 29th as scheduled. The union explained that while labor-management negotiations are ongoing, they have not yet reached a level where an agreement can be reached.
The Kakao Branch of the National Chemical, Textile, and Food Industry Labor Union (hereinafter referred to as the Kakao Union) announced on the 26th, “We will proceed with ‘Logout Day’ on June 29 as planned,” adding, “Negotiations are ongoing, but we have not yet reached a level where an agreement can be reached.”
The strike involves union members from five subsidiaries currently on strike. This includes members from Kakao Headquarters, kakaopay, Kakao Enterprise, DK Techin, and XL Games. According to the Kakao Union, the union has approximately 5,000 members.
The strike involves taking a full day off—either by using annual leave or simply not reporting to work. The union explained that members will also log out of the company’s work systems for the duration.
However, there will be no separate rallies or offline protests on that day. The Kakao union stated that it does not plan to issue a separate statement either. During the first partial strike held on the 10th, rallies and street marches took place in the Pangyo area, but this second strike will be conducted by logging out of the work systems.
The “Logout Day” on the 29th falls on the first workday following Kakao’s “Recovery Day” in May. Kakao designates the last Friday of every month as “Recovery Day,” a company-wide day off; this month’s Recovery Day is on the 26th. A source familiar with Kakao’s internal affairs said, “Since many employees tend to take annual leave immediately after Recovery Day, this is typically a time when the number of staff on duty decreases,” adding, “The ‘Logout Day’ on the 29th is taking place within this schedule.”
The Kakao Union held its first partial strike since the company’s founding on the 10th. At that time, approximately 1,500 employees from five subsidiaries—including Kakao headquarters, kakaopay, Kakao Enterprise, DK Techin, and XL Games—participated in a four-hour partial strike. According to union estimates, about 800 people gathered for the on-site rally in Pangyo.
The core of the labor-management conflict centers on the wage increase rate and the performance-based compensation system. It is reported that Kakao has accepted the union’s demand for a 6.9% annual salary increase and proposed applying this rate for the next three years. However, disagreements remain regarding a clause allowing for renegotiation in the event of drastic changes in profits, as well as the compensation structure, which includes restricted stock units (RSUs).
Management maintains that expanding cash-based compensation could strain the company’s capacity for future investment. In contrast, the union argues that since this compensation is for immediate performance, cash payments—rather than RSUs—are necessary. Employment stability issues also remain a point of contention across various subsidiaries.
Since a significant portion of the operations for major services such as KakaoTalk and kakaopay is automated, the company believes the impact on service will be limited. However, as the union has decided to proceed with a second “Logout Day” following the first partial strike, the labor-management conflict is expected to continue for the time being.
The union stated that it is currently discussing how to proceed with future strikes.
Meanwhile, concerns over a prolonged labor-management conflict at Kakao appear to be weighing on the company’s stock price. Kakao’s stock closed at 33,150 won on the 26th, down 3.21% from the previous trading day, and hit a 52-week low of 32,250 won during the session.
