Employees at Kakao staged a one-day walkout on June 29 after labor and management failed to reach an agreement on a new performance-based bonus system, escalating a labor dispute that has dragged on for nearly two months.
The action, known as “Logout Day,” called on union members to take a full day of paid leave or scheduled time off while logging out of the company’s internal work systems. It followed a four-hour partial strike held on June 10 and marked the second round of collective action by the union.
The walkout involved employees at five Kakao affiliates: Kakao, Kakao Pay, Kakao Enterprise, DK Techin and XL Games
Kakao’s main labor union represents about 2,500 employees at the parent company. Industry estimates suggest total participation could reach as many as 3,000 workers, including members at affiliated companies, though the final figure will be confirmed after the walkout ends.
The union did not schedule a rally or issue a separate public statement during the action.
The dispute stems from collective bargaining over performance-based compensation. Negotiations broke down in May, and the two sides have remained at odds ever since.
The union is demanding a performance bonus of about $7,300 per employee, equivalent to roughly 13% to 14% of the company’s operating profit. Management argues that the proposal would impose an unsustainable financial burden and has rejected the demand.
The broader technology sector is closely watching the walkout because it represents a significant escalation from the earlier half-day strike.
During the June 10 action, about 1,000 employees at Kakao headquarters and roughly 1,500 workers across the five participating affiliates joined the strike. The company reported no service disruptions, with automated operations helping maintain stable service.
The latest action raises concerns that a larger turnout and a full-day work stoppage could slow the company’s response to unexpected technical issues, even if core platforms remain operational.
Kakao said it activated a real-time response system to ensure the uninterrupted operation of major services, including KakaoTalk, while minimizing any inconvenience to users.
The company said it will continue negotiations with the union in an effort to reach a timely agreement while maintaining stable service for customers.
