Kakao's First-Ever Strike Scene Features Coffee Truck... Dispute Over Performance Bonuses and RSUs

Unions at Five Kakao Affiliates, Including Headquarters and Kakao Pay, Stage Four-Hour Partial Strike
Potential Escalation to Full Strike and Stronger Collective Action
Ministry of Science and ICT Discusses Emergency Response System... Kakao Vow

On June 10, Kakao launched its first-ever strike since the company’s founding. The labor union began a partial strike at 10 a.m., and union members wearing black group t-shirts bearing the slogan "Unity, Struggle, Our Crew Union Together" could be seen scattered throughout the Kakao Azit headquarters building in Pangyo. There was a palpable sense of tension. In front of the building, at Pangyo Station plaza, representatives from the Korean Federation of Chemical, Textile, and Food Industry Workers' Unions and the Kakao Branch were busy preparing for a rally and march scheduled for 11:30 a.m. Folk protest songs played throughout the square, and the union leadership prepared items for the rally, such as flags and snacks. On one side of the plaza, a coffee truck arranged by the union for members attending the rally stood out.

On the 10th, during Kakao Labor Union's first-ever strike since its establishment, the flag of the Kakao Branch of the Korean Federation of Chemical, Textile, and Food Industry Workers' Unions fluttered in the plaza at Pangyo Station, Seongnam City, Gyeonggi Province. Photo by Lee Myunghwan.

The Kakao Branch of the Korean Federation of Chemical, Textile, and Food Industry Workers' Unions (Kakao Union) began a four-hour partial strike starting at 10 a.m. that day. The five Kakao affiliates participating in the strike are Kakao headquarters, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games.

This is the first time Kakao has gone on strike. The union reported to the police that about 2,000 members would hold a rally from 9 a.m. to 4 p.m. on this day. The union gathered at Pangyo Station plaza at 11:30 a.m., marched approximately 800 meters to Pangyo U-Space, and then held a rally starting at 12:30 p.m. Some of Kakao's affiliates are located in U-Space.

On May 27, during the second mediation meeting regarding the 2026 wage negotiations held at the Gyeonggi Regional Labor Relations Commission, Kakao management and the union failed to narrow their differences. Since the breakdown of negotiations, the union has repeatedly released statements blaming the current situation on the management’s irresponsible actions.

The background to the conflict between Kakao management and the union centers around the performance-based compensation structure. Kakao headquarters and the union have not been able to reach an agreement on the size of the performance bonus and whether to include 5 million won worth of restricted stock units (RSUs) as part of the bonus. The union is demanding a performance bonus amounting to about 13–14% of operating profit and insists that RSUs should not be included as part of the performance bonus, while management argues that these union demands would pose a significant burden on company operations.

There is also interest in whether the Kakao union will escalate its actions in the future. The union has stated, "Rather than an immediate all-out strike, we are conducting a four-hour partial strike and plan to intensify our actions depending on future negotiations." The union has also left open the possibility of a full-scale strike if management does not actively engage in future talks.

Despite the strike, services such as KakaoTalk are operating without disruption. Kakao explained that maintenance work for stable service operations, including server upkeep, can be handled by automated systems, essential personnel, and non-union employees.

A Kakao representative stated, "We will establish the necessary response systems and do our utmost to ensure stable service operations so that users experience no inconvenience," adding, "We will build a real-time response system by minimizing areas that could impact services during collective action, assigning minimum response staff, and preparing for emergencies." Kakao CEO Chung Shinah reportedly emphasized in related meetings that every effort must be made to prevent any disruptions.

The government has also taken action in response. Since services such as KakaoTalk, Kakao Map, and Kakao Pay are closely integrated into daily life, authorities are preparing for any potential disruptions. The Ministry of Science and ICT held an inspection meeting with Kakao on June 8 to discuss ways to ensure stable service operations and emergency response systems. The government announced that it would monitor Kakao’s service conditions and establish a cooperative system to ensure prompt information sharing and response in case of any incidents.

On the 10th, a coffee truck prepared by the Kakao union for union members attending the rally was seen at Pangyo Station plaza. Photo by Myunghwan Lee

The IT and gaming industries, which have already completed wage negotiations, are closely watching the situation at Kakao, as compensation for employees could become a central issue in next year's labor negotiations. On May 11, Naver's management and union reached a tentative agreement to raise this year's wages by 5.3%. Other major gaming companies such as Nexon and NC completed their wage and collective bargaining agreements early. Hancom also announced on this day that it had reached an early agreement on the 2026 wage and collective bargaining deal with its union.

An official from the gaming industry commented, "Labor union activities have become relatively established, so similar conflicts could arise at any time as needed," adding, "There is also the risk that the major success of a particular game could lead to disputes over the fairness of performance-based compensation."

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