[Edaily Reporter Han Kwangbeom ] Kakao(035720) With labor-management negotiations failing to reach an agreement, the Kakao Labor Union will hold a “Logout Day” on the 29th, during which union members will take annual leave or take the day off.
The Kakao Branch of the National Chemical, Textile, and Food Industry Labor Union (Crew Union) stated, “Negotiations are ongoing, but we have not reached a level where an agreement can be made,” and decided to proceed with “Logout Day” on the 29th as planned. The union also indicated that it is continuing internal discussions regarding the format of future strikes.
This “Logout Day” applies to union members at five companies currently on strike: Kakao, kakaopay, Kakao Enterprise, DK Techin, and XL Games. Including approximately 2,500 union members at Kakao headquarters and members from affiliated companies, the number of participants in this collective action is expected to reach up to 3,000. However, the actual number of participants is expected to be confirmed on the day of the event.
As previously announced, the action will take the form of a complete work stoppage for one day, achieved by using a full day of annual leave or taking the day off. Union members will not perform any work on that day and will simultaneously log out of all internal work systems.
However, the union plans to demonstrate its stance solely through a complete system logout, without holding any separate offline rallies or taking other actions on the day, nor is it scheduled to issue a separate statement. Unlike the first partial strike on the 10th, which involved rallies and street marches in the Pangyo area, this second collective action will be conducted remotely by simultaneously logging out of the company’s internal network.
The core issues of the current labor-management conflict are the wage increase rate, the performance-based compensation system, and employment stability at affiliate companies. The two sides have been unable to bridge their differences for two months since collective bargaining negotiations broke down. The union is demanding a performance bonus worth 10 million won—equivalent to approximately 13–14% of operating profit—and a 6.9% annual salary increase.
On the other hand, while management has proposed accepting the union’s salary increase demand and applying it for the next three years, it maintains that it is difficult to accept the union’s demands regarding compensation methods—including restricted stock units (RSUs)—and performance bonuses, as these would place a significant burden on the company’s operations.
The IT industry is closely monitoring the potential impact on service operations, as this “Logout Day” differs from the first half-day strike in that union members will be taking a full day of paid leave or time off. Although approximately 1,500 employees across five subsidiaries participated in the first strike, service disruptions did not occur because a significant portion of service operations is automated.
However, there are concerns that this time, participation may be higher, and since union members will be absent from both their work and internal systems for an entire day, it could affect the company’s ability to respond to emergencies. Management plans to continue negotiations with the union while maintaining a real-time response system to ensure stable service operations and minimize the impact on customers.
