Kakao Apologizes for Breakdown in Labor Talks: "Union Demands Are a Major Burden on Management"

“We Approached the Entire Negotiation Process Sincerely...
Performance Compensation Must Be Balanced”

Regarding Service Disruption Concerns: “We Will Establish Necessary Contingency Systems”

With wage negotiations between Kakao's management and labor union breaking down, the company now faces the risk of a strike. Kakao has issued an apology to users and shareholders, stating that the union’s demands pose a significant burden on the company’s management.

On May 29, Kakao released a statement saying, “We sincerely apologize to our users, shareholders, and partners who have shown great interest in Kakao for any concerns caused by the recent wage negotiations.”

Kakao Pangyo Ajit, Seongnam, Gyeonggi Province. Photo by Jinhyung Kang aymsdream@

On May 27, during the second mediation meeting regarding the 2026 wage negotiations held at the Gyeonggi Regional Labor Relations Commission, the two sides failed to narrow their differences, resulting in the termination of mediation. As a result, the main union has secured the right to strike, opening up the possibility of Kakao’s first-ever strike since its founding.

Kakao’s position is that the union’s demands during the negotiation process have reached an excessive level. The company stated, “The total amount of the performance compensation plan currently requested by Crew Union (the labor union) represents a significant burden on management when considering the company’s operating profit. From the standpoint of having to secure future growth engines and enhance shareholder value, this is an unsustainable burden for the company.”

Kakao further explained, “Kakao is a company in which many shareholders have invested based on their belief in our future growth potential. Performance compensation for crew members must be balanced with future investment capacity and the enhancement of shareholder value, and should be provided at a sustainable level.”

Regarding the negotiation process thus far, the company stated, “We have approached the entire negotiation process with sincerity in order to enhance the compensation stability of our crew (employees), and have made efforts to find the best possible solution within the current management situation.”

Even if the union’s strike materializes, Kakao plans to ensure stable service operations. The company emphasized, “Safeguarding service stability so that users do not experience any inconvenience in any situation is Kakao’s important responsibility. We will establish the necessary contingency systems and do our utmost to maintain stable service operations.”

Kakao also noted that, given the intense competition in the global artificial intelligence (AI) service landscape, it is necessary to retain resources for future growth. The company stated, “We are currently competing against global AI big tech companies with immense capital strength, and we must concentrate all our capabilities to ensure our survival and future. In overcoming internal and external challenges, labor and management cannot be separated in the process of maintaining the trust of our shareholders and users.”

Kakao concluded, “We will keep the door open for dialogue until the very end and will do our utmost to ensure that shareholders, partners, and stakeholders are not adversely affected.”

This content was produced with the assistance of AI translation services.