Unionized Kakao Workers Stage First-Ever Walkout Over Bonus and Pay Disparity

SEOUL – Unionized employees of Kakao Corp., the operator of South Korea's dominant messaging app KakaoTalk, staged their first walkout in the company's history on Wednesday, demanding higher bonuses and a redesign of the compensation structure, according to reports from Yonhap News Agency.

The walkout and a rally began at 10 a.m. near the company's headquarters in Pangyo, south of Seoul, and were expected to last until 3 p.m., the union said. Participants from five units — including the headquarters, Kakao Pay and Kakao Enterprise — held white umbrellas and marched through the area alongside workers from other tech companies.

The action follows two rounds of government-mediated wage talks that failed to produce an agreement between the union and management.

Coverage Comparison

All reports on the walkout came from Yonhap, which provided consistent coverage of the labor dispute. While most details were shared across multiple dispatches, there were minor variations in the reported number of participants: two articles cited 1,500 participants, while one earlier report placed the figure at 600. The union itself confirmed 1,500 members from five units joined the protest, as stated in a Yonhap article that directly quoted the union.

One Yonhap article published before the walkout — dated May 29 — focused on the company's response after workers voted in favor of striking. That piece quoted Kakao management stating that the total compensation package demanded by the union could place a "huge burden" on operations. Another article covering the strike added that the union plans a second walkout called "Log-off day" on June 29.

Key Claims

  • Walkout and rally: Unionized members at Kakao Corp. staged a walkout and a rally near the company's headquarters in Pangyo, demanding higher bonuses and profit sharing, according to multiple Yonhap reports.
  • Participant numbers: Around 1,500 members from five units — including Kakao headquarters, Kakao Pay and Kakao Enterprise — participated, the union stated. Earlier industry estimates put the number at 600, as cited in one Yonhap article.
  • Executive versus employee pay: The union said Kakao's executives saw their average wages rise by 32.2% from 2024 to 2025, while the average wage for employees increased by only 2.9% during the same period. The claim was reported by multiple sources.
  • Union's demand: Workers are seeking 13–14% of last year's operating profits as performance-based incentives, and they want to redesign the compensation structure to include restricted stock units in the official bonus pool.
  • Management's position: Kakao's management has not accepted the demands, arguing they would place a heavy financial burden on the company. In a statement, the company said it competes with major tech firms with substantial financial resources and asked the union to compromise.
  • Future walkout: The union announced plans for a second four-hour walkout, dubbed "Log-off day," to take place on June 29. This claim was reported by a single Yonhap article.
  • Expected service impact: Industry watchers said the walkout would have limited impact on services including KakaoTalk, as core services are largely automated and essential personnel remain on duty. A Kakao management official said the company will "prepare necessary response systems and do our utmost to ensure stable service operations."

Perspectives

Union Perspective: The union argues that compensation is unfairly tilted toward executives while workers' pay has lagged. According to statements quoted by Yonhap, union members say management has offered only limited pay raises despite the company posting record profits in recent years. The union is demanding 13–14% of operating profits as bonuses and a new compensation structure that includes equity compensation in the official bonus pool.

Management Perspective: Kakao management stated that the total compensation package demanded by the union could place a huge burden on operations. The company noted that it is competing with major global tech firms and said it has kept the door open for dialogue. Management also said it will work to ensure the dispute does not affect shareholders, partners, and other stakeholders.

Broader Context: The walkout marks a notable moment in South Korea's tech sector, where labor actions at major IT companies have been relatively rare. The events come as Kakao has posted strong financial results, and the pay disparity between executives and regular employees has emerged as a flashpoint in negotiations. The union's planned second walkout on June 29 indicates the dispute has not yet been resolved. Despite the strike, users of KakaoTalk and other services are not expected to experience significant disruption.