Concerns over the first full-scale strike in Kakao's history are mounting after union members at five affiliates, including Kakao (035720.KS) headquarters, voted in favor of a walkout. The union plans to escalate its protest, as four of the affiliates have already secured the legal right to strike.
The Kakao chapter of the National Chemical Textile and Food Workers' Union under the Korean Confederation of Trade Unions (Kakao union) held a rally at Pangyo Station Plaza on Thursday and announced, "Today's strike vote was approved at all five affiliates. Now that we have secured the legal right to industrial action, we will share our future protest plans."
The Gyeonggi Regional Labor Relations Commission earlier postponed mediation proceedings for Kakao headquarters, while mediation between labor and management at four affiliates — Kakao Pay (377300.KS), Kakao Enterprise, DK Techin, and XL Games — has ultimately broken down. As a result, these affiliates excluding the headquarters have already secured the legal right to strike and can proceed with a general walkout.
Kakao headquarters will also obtain the right to strike if the second mediation meeting, extended to the 27th, fails, raising the likelihood that the action will spread into a group-wide collective movement.
A total of 12 affiliates participated in Thursday's rally, including Kakao headquarters, where wage negotiations have collapsed. The IT Committee of the National Chemical Textile and Food Workers' Union, which includes Naver (035420.KS), Nexon, and Neople, also joined in solidarity. They are calling for an overhaul of the compensation system, including performance bonuses, and demanding a more accountable attitude from management during negotiations.
