Unionized members at Kakao to stage partial walkout next week

Unionized members of Kakao Corp. stage a demonstration near the company's headquarters in Pangyo, Gyeonggi Province, May 20. Yonhap

Kakao Corp.'s labor union said Monday it will initiate a partial walkout next week, after a second round of wage talks mediated by the government fell through last month.

Unionized members said in an official statement it will stage a four-hour strike on June 10 and march near the company's headquarters in Pangyo, Gyeonggi Province, south of Seoul.

It demanded the company secure the employment stability of its workers and improve its compensation structure, which it claims allows executives to "monopolize excessive rewards."

The union also warned it could increase the scale of the strike depending on the outcome of future negotiations.

The latest development comes amid a labor dispute over performance-based pay and profit sharing at Korean companies, sparked by the recent standoff at Samsung Electronics.

On May 27, Kakao's labor and management failed to reach an agreement in the second round of wage talks mediated by the government, as the two sides were unable to narrow differences in the performance-based incentive structure.

Unionized workers at Kakao's five units, including its headquarters, Kakao Pay Corp. and Kakao Enterprise, had previously voted in favor of a walkout.

Kakao's management said it will take all possible steps to maintain stable service operations, including its popular messenger app KakaoTalk.