Kakao Labor Union Launches Second Strike Today... Labor-Management Talks Remain Deadlocked

"Logout Day" Annual Leave Protest

Prolonged Labor-Management Conflict Over Inclusion of RSUs in Performance Bonuses

On June 29, the Kakao labor union will launch its second strike in the form of annual leave action. As the gap between labor and management regarding the performance-based compensation structure remains unresolved, concerns are mounting over a prolonged conflict.

According to the Kakao branch of the Korean Federation of Chemical, Textile, Food and Service Workers' Unions (hereafter, the Kakao labor union), the union will stage a one-day annual leave protest under the banner of "Logout Day." Union members will either use their annual leave or adjust their working hours so as not to work, effectively logging out from work systems—hence the name of the protest.

The Kakao labor union, which has entered a partial strike, is marching from the Kakao Pangyo Ajit in Seongnam, Gyeonggi Province, to Y-Space Plaza on the 10th. Photo by Yonhap News

The total number of union members across all Kakao affiliates is around 5,000, and the union plans to encourage all of them to participate in Logout Day. However, unlike previous strikes, no separate rally or march has been announced for this second strike.

Even if the union members do not work due to the annual leave protest, it is expected that there will be little to no impact on services such as KakaoTalk or Kakao Pay transfers. During the first partial strike on June 10, all Kakao services, including KakaoTalk, operated normally without disruptions. Kakao has explained that maintenance work required for stable service can be handled by non-union members or emergency response personnel. A union official also implied, "Even if the strike proceeds, the impact on Kakao services will be minimal."

On June 10, the Kakao labor union previously staged a partial strike for about four hours (excluding lunchtime), from 10 a.m. to 3 p.m. This was the first strike in Kakao's history, and according to the union's estimates, about 1,500 members participated. On that day, the union marched from Pangyo Station Square to H Square in Pangyo and held a resolution rally, chanting slogans demanding the resignation of management and employment stability.

The background of the conflict between labor and management at Kakao centers on the performance-based compensation structure. Specifically, the two sides have failed to narrow their differences over the amount of the performance-based bonus and whether to include 5 million won worth of restricted stock units (RSUs) in the bonus. The union is demanding a bonus amounting to about 13–14% of operating profit and insists that RSUs should not be included as part of the performance-based bonus, while management argues that these union demands would be a burden to the company. In addition, employment stability issues at subsidiaries such as Kakao Enterprise and XL Games have also been raised as agenda items.

On May 27, labor and management failed to reach an agreement at the second round of mediation for the 2026 wage negotiations held at the Gyeonggi Regional Labor Relations Commission, thereby acquiring the right to strike. Since the breakdown of negotiations, the union has pointed to irresponsible management actions by the leadership as the root cause of the current situation. A Kakao labor union representative explained, "Negotiations are still underway even after the previous partial strike, but we have not yet reached a level where agreement is possible."

Meanwhile, the method and duration of future strikes have not yet been determined. A Kakao union representative stated, "We are currently discussing how to proceed with future strike actions."

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