A major South Korean technology company announced Wednesday that wage negotiations with its workers’ union have collapsed despite government intervention to help broker a deal.
Kakao Corp revealed that second-round discussions mediated by government officials failed to produce an agreement on employee compensation. The company stated it remains committed to continuing efforts to find common ground with union representatives.
Following the unsuccessful talks, a union representative confirmed to Reuters via text message that workers will proceed with their planned strike action in June.
Workers at Kakao Corp and four related companies, including headquarters operations, Kakao Pay Corp and Kakao Enterprise, had previously approved strike authorization through a formal vote.
The union has not disclosed exactly how many members from the main company and its four affiliates will join the work stoppage. However, approximately 700 union members gathered at a demonstration on May 20, according to a union leader.
In a statement released earlier this month, the union criticized management for providing “excessive bonuses” exclusively to executives while the company achieved record-breaking revenue and profits in recent years.
Union representatives also accused the company of failing to address concerns about overtime policies and showing a lack of genuine commitment during bargaining sessions.
Kakao Corp responded in its own statement, asserting that it had engaged in good-faith negotiations with the union regarding the 2026 wage agreement but could not come to terms on how to structure employee compensation.
