Kakao headquarters workers walked off the job Wednesday in the first strike at the company’s main office since its founding. The four-hour partial strike drew about 1,500 employees across the group including four affiliates. This action escalated a monthslong disagreement over profit sharing.
The Crew Union demands bonuses tied to a fixed share of operating profit, specifically between 13 and 15 percent. That formula would deliver roughly 10 million won per worker. Additionally, the union wants 5 million won in restricted stock units paid separately rather than counted within the bonus. Meanwhile, the company offered a compensation pool that merges those stock units into the calculation. The union calculates this offer at about 10 percent of operating profit. Consequently, the core conflict centers firmly on how the company approaches profit sharing.
Union chapter head Suh Seung-wook announced a second, larger walkout on June 29, calling it a “log-off day.” Members plan to register leave and log out of internal systems for a full day. The union aims to mobilize all 5,000 members, which could disrupt services such as KakaoTalk and Kakao Pay. “Kakao’s real reform has to be made by its crew, not its executives,” Suh declared.
The fight over profit sharing extends well beyond Kakao. Through 2026, major Korean firms have faced similar union demands. Samsung Electronics and SK hynix experienced pressure during the memory-chip boom to lock bonuses to a set percentage of profit. This trend pits worker claims on company earnings against management’s argument for investment flexibility. Yet Kakao posted record first-quarter results, with operating profit surging 65.9 percent to 211.4 billion won. The union argues those gains flowed to executives while ordinary staff endure restructuring and spinoffs.
Despite the walkout, Kakao services ran normally because most operations are automated. The company maintained a real-time response system throughout the day. The Ministry of Science and ICT reviewed service-stability measures with Kakao before the strike. Kakao stated it will continue talks with the union in pursuit of a deal. Shares closed down about 3.5 percent Wednesday. The unresolved profit sharing dispute now threatens further labor action as the June 29 deadline approaches.
