Kakao Finalizes Wage Negotiations... 6.3% Increase and Special Incentive of 3 Million Won

Labor Dispute Ends After Three Months

Kakao's management and labor union announced on August 7 that they have reached a final agreement on this year's wage negotiations through a union vote.

Yonhap News Agency

The agreement includes a 6.3% increase in the total annual wage budget and the payment of a special incentive of 3 million won.

The Kakao branch of the Korean Federation of Chemical & Textile Workers' Unions (KCTF) stated, "Voting on the tentative agreement among union members has been completed," and added, "The process will conclude with a formal signing ceremony and other final procedures."

At the beginning of this year, Kakao's management and labor union had differences regarding the wage increase rate and a new performance bonus standard. The union demanded a 6.9% wage increase and a performance bonus equivalent to 13-14% of operating profit. Management maintained its position of a 6.8% wage increase and using 10% of operating profit as the bonus pool, insisting that already granted Restricted Stock Units (RSUs) and similar benefits be included within the scope of the performance bonus.

With negotiations stalled, the Kakao union held a four-hour partial strike on June 10, which included union members from Kakao headquarters and major affiliates.

On June 29, union members took annual leave and logged out of the company's internal work system in an event called "Logout Day," and last month, they also held an in-house picket protest.

After 18 rounds of negotiations, both sides reached a tentative agreement on July 29 regarding wage negotiations.

A Kakao representative commented, "We will faithfully implement the agreement reached through these negotiations and work together to create a work environment that enables sustainable growth and allows our members to focus better on their work."

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