[Edaily Reporter Lee So-Hyun ] Kakao(035720) The labor union will hold an in-house picket protest on the 21st. This is the first collective action in about three weeks since the “Logout Day” on the 29th of last month, when union members logged out of the company’s work systems for a day. Although labor and management are continuing negotiations, the conflict appears to be dragging on as they have yet to reach an agreement.

According to the IT industry on the 13th, the Kakao Branch of the National Chemical, Textile, and Food Industry Workers’ Union (Crew Union) under the Korean Confederation of Trade Unions (KCTU) plans to hold a picket protest inside the Kakao Pangyo Ajit in Seongnam, Gyeonggi Province, for about an hour starting at 12:00 p.m. on the 21st.

This picket protest will be conducted on a voluntary basis during lunch break. The union stated, “We are currently determining the number of participants.”

Labor-management negotiations are reportedly ongoing. However, with disagreements remaining over issues such as the wage increase rate and performance-based compensation methods, it remains unclear whether a settlement will be reached.

Since the picket protest is taking place during the lunch break on company premises, any delays in work or direct impact on the operation of major services such as KakaoTalk and kakaopay are expected to be limited. Operations for Kakao’s major services are largely automated, and the company has already activated an emergency response system during previous strike situations.

The Kakao union has been pursuing labor dispute procedures after failing to bridge differences with management during wage and collective bargaining negotiations. The union is demanding job security and improvements to the compensation system, citing issues such as the lack of transparency in performance-based compensation criteria, job insecurity, and management accountability.

Previously, on the 10th of last month, the union held a four-hour partial strike. For Kakao’s headquarters, this marked the first strike in the company’s 20-year history. Approximately 1,500 employees from five entities—including Kakao Headquarters, kakaopay, Kakao Enterprise, DK Techin, and XL Games—participated, and a street march was also held in the Pangyo area.

Subsequently, on the 29th of the same month, they held their second collective action, “Logout Day.” Logout Day involves union members using annual leave or taking the day off to refrain from working for a day and logging out of the work systems. According to union estimates, approximately 2,100 members from the five companies participated, and major services such as KakaoTalk and kakaopay operated without significant disruption.

The core of the labor-management conflict centers on the wage increase rate and the performance-based compensation system. It is reported that Kakao proposed accepting the union’s demand for a 6.9% annual salary increase and applying it for the next three years. However, negotiations are facing difficulties due to lingering disagreements over a clause allowing for renegotiation in the event of significant 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, it should be paid in cash rather than through RSUs. At some subsidiaries, such as DK TechL, job security has also been raised as a key issue.

Kakao management stated, “The company is engaged in ongoing dialogue with the labor union and is working toward a prompt agreement.”