South Korean tech giant Kakao Corp. announced Friday that the **compensation package** demanded by its **labor union** could significantly burden the company’s **operations**, following a decision by workers to proceed with a **strike** next month. This statement signals an escalating **labor dispute** at the operator of the popular KakaoTalk messenger app.
This official declaration came after **Kakao’s management** and its **union** failed to reach an agreement during the second round of government-mediated negotiations. The impasse highlights ongoing tensions over employee benefits and corporate spending.
Previously, **unionized workers** across five key Kakao units, including its headquarters, **Kakao Pay Corp.**, and **Kakao Enterprise**, had overwhelmingly voted in favor of a **walkout**, indicating widespread dissatisfaction.
“The total amount of the **compensation package** demanded by the **union** is at a level that could place a huge burden on the company’s operations,” stated Kakao Corp., emphasizing its concerns about the financial impact of the proposed changes.
Earlier this month, the **Kakao union** criticized the company for offering only “limited” compensation to its employees, while **executive compensation** reportedly increased. This disparity emerged despite **Kakao** achieving **record profits** in recent years, fueling employee discontent and calls for fairer distribution of wealth.
The **union’s demands** include a significant redesign of the existing **performance-based incentive structure**. They are seeking to incorporate **restricted stock units (RSUs)**, a form of equity compensation designed to align employee interests with long-term company performance.
**Kakao** has urged its **union** to find a compromise, citing intense competition within the global **big tech** landscape. The company argues that it must maintain financial prudence to compete effectively with rivals possessing “substantial financial resources,” suggesting the proposed compensation could hinder its competitive edge.
