A labor union at Kakao Corp. and the company's management failed to reach an agreement in a second round of mediation with the Gyeonggi Regional Labor Relations Commission on May 27. As a result, unionized members at the headquarters and four affiliates have secured the right to strike.
The mediation came after the two sides failed to narrow differences in the first round of wage talks held May 18. The union is seeking to include restricted stock unit grants in the official performance-based incentive pool.
The five labor unions had voted last week in favor of a walkout after wage negotiations with management fell through. With the breakdown, the possibility of Kakao's first-ever strike since its founding has risen.
The latest development comes amid broader calls for performance-based bonuses and profit sharing in South Korean companies, sparked by the recent labor-management dispute at Samsung Electronics Co.
