Kakao workers staged the company's first partial strike on Wednesday to demand higher wages and a specific share of operating profits [1].
This action marks a significant escalation in labor tensions at one of South Korea's largest tech firms. The dispute centers on the company's "N% performance-bonus" policy, reflecting a growing demand among tech employees for transparent, profit-linked compensation models.
The strike took place at Kakao headquarters and its subsidiaries located in the Pangyo Techno Valley area of Seongnam [1]. The walkout lasted for four hours, running from 10 a.m. to 3 p.m., with a scheduled break for lunch [1].
Approximately 1,000 workers participated in the action, representing about 25% of the company's 4,000 employees [1]. Despite the walkout, company services remained uninterrupted during the protest.
The labor union is seeking a performance bonus equal to 13% of the company's operating profit [1]. Additionally, the union is demanding a seven percent increase in wages [1].
This is the first time since the founding of Kakao that employees have engaged in a partial strike. The union's focus on a percentage of operating profit suggests a shift toward collective bargaining for a direct stake in the company's financial success, a move that has put other companies in the industrial sector on high alert [1].
“The strike took place at Kakao headquarters and its subsidiaries located in the Pangyo Techno Valley area.”
The shift toward demanding a fixed percentage of operating profit represents a move away from discretionary bonuses toward a formulaic compensation structure. If successful, this precedent could trigger similar demands across South Korea's tech sector, increasing labor costs and changing how corporate profits are distributed between shareholders and staff.
