[Edaily Lee So-Hyun An Yu-ri Reporter] Kakao(035720) Kakao’s management and labor union have reached an agreement on this year’s wage negotiations. The labor-management conflict at Kakao’s headquarters—which had escalated to the company’s first-ever strike due to disagreements over the performance-based compensation system—is now on the path to resolution after about three months. Kakao, which posted record-high earnings in the second quarter, is expected to focus on expanding its artificial intelligence (AI) services in the second half of the year.

On the 7th, the Kakao Branch of the Textile, Chemical, and Food Workers’ Union under the Korean Confederation of Trade Unions (KCTU)—known as Crew Union—concluded a vote among its members on the tentative agreement and approved it.

In a statement, Crew Union announced, “The vote on the tentative agreement among union members has concluded,” adding, “With its final approval, the process will be officially concluded after going through procedures such as the signing ceremony.” The date of the signing ceremony has not yet been set.

Kakao stated, “We plan to faithfully implement the agreement reached through these negotiations and work together to foster sustainable growth and create a work environment where our employees can focus more on their work.”

6.3% Annual Salary Increase and 3 Million Won Special Incentive Payment

It is reported that this agreement includes a 6.3% increase in total annual salary—excluding funds allocated for “stage-up” promotions based on job and role advancements—as well as a special incentive payment of 3 million won. However, Crew Union drew a line against disclosing specific details, stating, “The contents of the negotiations and the settlement terms have always been, and will continue to be, confidential.”

Based on the information available, it appears that a compromise was reached at a level lower than the union’s initial demands. Considering that management had initially expressed concerns about standardizing performance-based bonuses, this is interpreted as a compromise achieved by combining a fixed salary increase with a one-time incentive payment.

Previously, the Kakao union had demanded a 6.9% annual salary increase, performance bonuses amounting to 13–14% of operating profit, and the establishment of clear criteria for performance bonuses worth 10 million won per employee. In contrast, management had maintained that while it would accept a significant portion of the salary increase demand, the performance bonus demand would place a heavy burden on operations.

Higher Increase Than Naver, but Conflict Costs Were High

Compared to this year’s labor-management agreement at Naver, Kakao’s latest settlement offers a slightly higher salary increase rate. Naver’s labor and management agreed on a 5.3% salary increase for this year. In contrast, Kakao’s negotiations were marked by significant disagreements over the performance bonus structure and whether Restricted Stock Units (RSUs) should be included in the calculation, ultimately leading to the company’s first-ever strike.

Although Kakao reached an agreement with a higher pay increase rate than Naver, the cost of the conflict was significant. On June 10, the Kakao union staged a four-hour partial strike involving union members at the headquarters and major subsidiaries. This was the first strike in Kakao’s history. Subsequently, on June 29, union members took annual leave and logged out of the company’s internal work systems as part of a “Logout Day,” and on the 21st of last month, they even held a picket protest on company premises.

After 18 rounds of negotiations, labor and management reached a tentative agreement on the 29th of last month. While the labor-management conflict at Kakao’s headquarters has been temporarily resolved with the passage of this vote, labor-management risks across the entire Kakao group have not been fully eliminated. Negotiations at some subsidiaries, including KakaoBank Corp., DK Techin, and XL Games, have not yet been finalized.

Kakao Posts Record-High Second-Quarter Earnings… AI Monetization to Be Put to the Test in the Second Half

Having resolved the labor-management conflict, Kakao now faces the challenge of solidifying its growth strategy for the second half of the year, centered on KakaoTalk and AI. On the 6th, Kakao announced that it recorded consolidated revenue of 2.0985 trillion won and operating profit of 277 billion won for the second quarter of this year. Compared to the same period last year, revenue increased by 9% and operating profit by 36%, with both figures marking all-time quarterly highs.

Kakao’s key strategy for the second half of the year is agent-based AI powered by KakaoTalk. Its first collaboration will be in food delivery, with plans to partner with Coupang Eats. Kakao plans to gradually roll out AI experiences that allow users to complete everyday tasks—such as ordering, booking, and payment—within KakaoTalk, aiming to turn this into a new pillar of growth and monetization. The company intends to partner with providers in high-frequency usage areas—such as commerce, reservations, travel, and payments—and expand its ecosystem by leveraging its proprietary open platform, “PlayMCP.”

During the second-quarter earnings call, Kakao CEO Jeong Shin-ah stated, “Competitive advantage in the era of agentic AI lies not merely in creating outstanding models, but in understanding users’ context and intent and connecting them to actual actions.” She added, “Based on KakaoTalk—our daily touchpoint with users—and the technology and service ecosystem we have built up, we will accelerate the arrival of an era where all Koreans naturally utilize their own AI agents.”