(2nd LD) Kakao's labor, management fail to reach agreement in 2nd mediation talks

Lead

Kakao Corp. CEO Chung Shin-a apologized Thursday for failing to ease concerns over ongoing wage talks, a day after the labor union and the management failed to reach an agreement in their second round of mediation, according to Yonhap News Agency.

"I sincerely apologize for the failure to swiftly resolve various concerns and uncertainties," Chung said in an internal notice, as reported by Yonhap. "I will redouble efforts to listen more closely, resolve differences through dialogue and come together in unity under Kakao, once again."

Coverage Comparison

Reports from Yonhap News Agency provide a consistent timeline: the first round of mediation was held May 18, and the second round on May 27 ended without agreement. Following the breakdown, unionized members at Kakao's headquarters and four affiliates secured the right to strike, raising the possibility of the company's first-ever strike since its founding, according to Yonhap.

Earlier reports noted that unionized workers at Kakao Pay, Kakao Enterprise, DK Techin and XL Games had voted in favor of a strike authorization. The union had filed for mediation with the Gyeonggi Regional Labor Relations Commission after wage negotiations with management fell through.

A separate report said mediation proceedings for Kakao's headquarters were postponed until May 27, while talks involving the four affiliates ended without agreement.

Key Claims

• Labor and management failed to reach an agreement in the second round of mediation on wage negotiations, as reported by Yonhap News Agency.
• Unionized workers at five Kakao units—headquarters, Kakao Pay, Kakao Enterprise, DK Techin and XL Games—approved a strike authorization vote, according to Yonhap.
• The union is seeking performance-based incentives equivalent to around 13 to 14 percent of operating profit, a claim carried by Yonhap.
• The union plans to stage a demonstration near the company's headquarters in Pangyo, south of Seoul, on June 10, with some 1,200 members set to march from 9 a.m. to 4 p.m., as reported by Yonhap.
• CEO Chung Shin-a mentioned a possible reorganization, stating it is time to "establish a stable framework, redefine service standards and work together to align our direction," according to Yonhap.
• Kakao's Chief Product Officer Hong Min-taek is said to have expressed intent to resign and is expected to leave next month, according to industry insiders cited by Yonhap.

Perspectives

Kakao management: CEO Chung Shin-a apologized for the failure to resolve concerns, pledged to listen more closely and resolve differences through dialogue, and hinted at a possible reorganization to establish a stable framework.

Kakao labor union: The union said the matter is "deemed insolvable through patience alone" and announced full-scale preparations for a walkout in June, while keeping open the possibility for further dialogue, as quoted by Yonhap.

Broader context: The dispute comes amid wider calls for performance-based pay and profit-sharing at major South Korean companies, with Yonhap noting a similar labor-management dispute at Samsung Electronics.