Naver and Kakao Unions Urge Integrated Bargaining, Criticize Parent Companies for Dodging Responsibility Through 'Splitting Up Subsidiaries'

Naver Union Calls on National Assembly and Government for Systemic Reform

The labor unions of Naver and Kakao have called for integrated bargaining, pointing out the contradiction of the current negotiation structure in which the parent company holds authority but avoids responsibility through the ‘splitting up subsidiaries’ strategy.

On October 1, the Korean Federation of Chemical, Textile and Food Industry Workers' Unions held a joint press conference at the National Assembly's press briefing room together with Assemblyman Lee Yongwoo of the Democratic Party of Korea. They demanded improvements to the system from the National Assembly and the government, arguing that the revised Trade Union Act (the ‘Yellow Envelope Act’), which went into effect in March this year, has lost its force in practice.

The unions of Naver and Kakao stated that, following the implementation of the revised Trade Union Act, they had each requested integrated bargaining with their respective parent companies, Naver and Kakao. However, both companies refused on the grounds that they “do not have the authority.” Given that in the IT industry, the business structure is split into numerous subsidiaries while actual decision-making over working conditions is concentrated at the parent company, they argue that negotiations at the individual subsidiary level are inherently limited.

Shin Hwansub, chairman of the Chemical, Textile and Food Industry Workers’ Union, addressed the structural problems throughout the IT, gaming, and platform industries and emphasized the necessity of introducing an integrated bargaining system as a solution. The union includes key IT, gaming, and platform branches, such as those of Naver, Kakao, Nexon, and NC.

That day, Oh Seyoon, head of the Naver branch (and head of the IT Committee of the Chemical, Textile and Food Industry Workers’ Union), said, “Despite evidence and extensive documentation proving that Naver, as the parent company, has determined the working conditions of all its subsidiaries, management continues to reject even the official notice of our integrated bargaining demand, dismissing it with a single line claiming they lack ‘substantial and specific authority’ over the subsidiaries.” The Naver union held a declaration ceremony for its integrated bargaining demand on August 20 and made an official request for notice, but they reported that more than 40 days have since passed with no notice being issued.

Oh added, “The intent of the Yellow Envelope Act has been completely undermined on the ground, while only large law firms are profiting. The Ministry of Employment and Labor must establish clear administrative guidelines and fully carry out its responsibilities, and the National Assembly needs to promptly address deficiencies in the Yellow Envelope Act.” The Naver branch plans to file for corrective action with the Gyeonggi Labor Relations Commission on October 2 regarding the failure to give official notice of the integrated bargaining demand, continuing with legal action.

The Kakao union also stressed the need for a new bargaining structure in the IT industry. Seo Seungwook, head of the Kakao branch, said, “Those who have authority should not be able to hide behind a lack of responsibility. Rather than shifting the consequences of failed businesses onto workers’ jobs and wages, the group must first seek solutions from within.”

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