Kakao (035720.KS) said the performance compensation package demanded by its labor union represents a significant burden on company management, exposing a wide gap between the two sides following the breakdown of wage negotiations.
"The total scale of the performance compensation plan demanded by Crew Union (the labor union), when considered against operating profit, is a level that places a significant burden on company management," Kakao said in an official statement Wednesday.
"For a company that must secure future growth engines and enhance shareholder value, this is a burden that is realistically difficult to bear," the company added.
Labor and management failed to narrow differences over the size and calculation method of performance compensation during a second mediation session at the Labor Relations Commission the previous day. In response, the union has decided to hold a rally on the 10th of next month and launch full-scale collective action including a strike.
Kakao stressed that it has "engaged sincerely throughout the entire negotiation process to enhance compensation stability for crew (employees)" and has "worked to derive the best possible plan acceptable under current management conditions."
"Performance compensation for crew members must be balanced at a sustainable level, taking into account both future investment capacity and the enhancement of shareholder value," the company said.
Kakao also drew a line on concerns that a union strike could disrupt service usage. "Maintaining service stability so that users experience no inconvenience under any circumstances is an important responsibility of Kakao," the company said. "We will establish the necessary response systems and do our utmost to ensure stable service operations."
"Kakao is competing with global AI big tech companies that possess enormous capital power. This is a time when we must concentrate all our capabilities for survival and the future," the company said. "Labor and management cannot stand apart in the process of overcoming internal and external difficulties and protecting the trust of shareholders and users. We will keep the path of dialogue open until the end and do our best to ensure there is no impact on shareholders, partners, and stakeholders."
