Kakao Labor Mediation Collapses Over Bonus Dispute

Kakao Corp. and its labor union failed to reach an agreement during their second mediation session on Wednesday, increasing the risk of a strike ^[1].

The breakdown in negotiations is significant because the company has not experienced a strike since its founding. A work stoppage at one of South Korea's largest technology firms could disrupt critical digital services and signal a shift in the labor dynamics of the nation's tech sector.

The mediation took place at the Gyeonggi Provincial Labor Relations Commission on May 27, 2026 ^[1]. The session began at 3 p.m. and lasted for eight hours before the parties reached an impasse ^[1].

The primary conflict centers on the formula used to calculate performance bonuses. Management proposed a bonus equal to 10.2% of operating profit, though this figure excludes restricted-stock shares ^[1]. Under this proposal, the calculated bonus would amount to 10,000,000 KRW per employee ^[1].

The labor union rejected this offer and demanded that bonuses be set at 14% of operating profit ^[1]. Union representatives said that the stock component should be treated as a separate entity rather than being bundled into the performance-bonus calculation ^[1]. Based on the union's demanded percentage, the bonus would rise to 15,000,000 KRW per employee ^[1].

Both parties spent the eight-hour session attempting to bridge the gap between the 10.2% and 14% profit-sharing markers ^[1]. Because the mediation collapsed, the union now has a legal pathway to pursue industrial action if a voluntary agreement is not reached.