[Alpha Biz= Kim Jisun] Kakao is facing the risk of its first-ever general strike after labor-management negotiations over compensation failed, granting the union the legal right to strike.

The company said on May 27 that mediation by the regional labor commission ended without agreement following a second round of talks. As a result, the union has secured the right to take collective action and is preparing for a strike as early as next month.

The dispute centers on performance-based compensation, with the union arguing that employee bonuses do not reflect the company’s record earnings, while top executives received substantial payouts. The union has reportedly demanded bonuses equivalent to 13–14% of operating profit.

Additional points of contention include whether restricted stock units (RSUs) should be counted as part of bonuses, as well as concerns over unilateral decision-making, overtime practices, and workplace issues.

Strike action could expand beyond Kakao’s headquarters, as unions at several affiliates have also secured the right to strike, raising the possibility of a broader group-wide disruption.

Kakao said it will continue efforts to reach an agreement with the union despite the breakdown in mediation.

 

 

 

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