[Alpha Biz= Kim Jisun] Two affiliates of Kakao failed to reach an agreement in labor mediation on May 18, increasing the likelihood of strike action as wage negotiations remain deadlocked.

According to industry sources, DK Techin and XL Games participated in mediation proceedings at the Gyeonggi Regional Labor Relations Commission but ended without a settlement. Kakao’s headquarters is continuing its own mediation process later in the day.

The breakdown in talks allows the union to proceed with a strike authorization vote, securing the legal right to undertake collective action, including strikes or work slowdowns.

The dispute follows a broader breakdown in wage negotiations across five Kakao-related entities, including Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games. Earlier mediation efforts had already failed at Kakao Pay and Kakao Enterprise, granting unions at those units the right to strike.

Key issues in the negotiations include salary increases and the structure of performance-based bonuses. While industry reports suggested the union was seeking bonuses equivalent to 13–14% of operating profit, the union clarified that a 10% proposal was merely one of several options previously discussed.

The union has also cited broader concerns, including excessive working hours, unilateral implementation of bonus policies, and repeated changes in bargaining representatives.

With mediation now collapsing at multiple affiliates, union members are expected to vote on potential strike action at a rally scheduled for May 20 near Pangyo Station in Seongnam. If carried out, it would mark the first strike in Kakao’s history.

 

 

 

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