Workers at South Korean technology company Kakao staged the company’s first-ever strike on Tuesday, escalating a labor dispute centered on performance bonuses and stock-based compensation.
The labor union representing Kakao employees carried out a partial walkout from 10 a.m. to 3 p.m. local time and organized a march near the company’s Pangyo headquarters, one of South Korea’s largest technology clusters.
The demonstration covered a route of approximately half a mile between Kakao’s office complex and a nearby business district. Although the union initially notified authorities that around 2,000 members could participate, industry estimates suggested that roughly 600 workers would ultimately join the protest.
The strike involved employees from five Kakao affiliates: Kakao Corp., Kakao Pay, Kakao Enterprise, DK Techin and game developer XL Games.
The participating units secured the legal right to strike after mediation efforts at the Gyeonggi Provincial Labor Relations Commission failed to produce an agreement. Union members subsequently approved industrial action through a vote.
At the center of the dispute is the company’s performance-based compensation structure.
The union has argued that employees should receive bonuses equivalent to 13% to 14% of annual operating profit, which it estimates would amount to approximately ₩10 million, or about $7,300, per worker. Labor representatives have also opposed including restricted stock units, or RSUs, worth about ₩5 million, or roughly $3,650, as part of annual performance compensation.
Management has maintained that the union’s proposal would place a substantial financial burden on the company.
Despite the walkout, disruptions to major Kakao services, including messaging platform KakaoTalk and digital payments service Kakao Pay, are expected to be limited.
Industry observers say essential personnel remain in place and most critical service infrastructure is highly automated, reducing the likelihood of operational interruptions.
Kakao said it has established contingency measures to ensure service reliability.
“As a platform company that connects the daily lives of millions of users and supports merchants and business partners, maintaining service stability under all circumstances is one of Kakao’s key responsibilities,” a company spokesperson said. “We will continue to do our utmost to ensure stable operations through the necessary response systems.”
