Members of the Kakao chapter of the Korean Confederation of Trade Unions' National Chemical Fiber Food Industry Union stage a picket protest Tuesday at Pangyo Techone in Seongnam, Gyeonggi Province, where KakaoBank is headquartered, denouncing the company's proposed wage increases and performance bonus structure. [Newsis]
Members of the Kakao chapter of the Korean Confederation of Trade Unions' National Chemical Fiber Food Industry Union stage a picket protest Tuesday at Pangyo Techone in Seongnam, Gyeonggi Province, where KakaoBank is headquartered, denouncing the company's proposed wage increases and performance bonus structure. [Newsis]

KakaoBank's labor union will stage a full-day strike on July 31 after wage negotiations broke down.

Seo Seung-wook, chapter head of the Kakao chapter of the Korean Confederation of Trade Unions' National Chemical Fiber Food Industry Union, announced the strike Tuesday at a picket rally at Kakao Azit in Pangyo, Seongnam, Gyeonggi Province. "We have decided to carry out a full-day strike on July 31, limited to KakaoBank," he said. "The company has not engaged actively in negotiations, and the gap between the two sides has not narrowed."

KakaoBank's management and union had earlier failed to reach an agreement on wages and collective bargaining terms and submitted the dispute to the Gyeonggi Regional Labor Relations Commission for mediation. A mediation session held Monday also failed to bridge the divide. The commission determined the gap was too wide to continue and issued a decision to suspend mediation. The union then completed the required procedures — including a vote on whether to take industrial action — and formally confirmed the full-day strike.

According to industry sources, management proposed paying performance bonuses equivalent to about 10 percent of operating profit, combining cash and company shares, but the union pushed back, demanding a higher level of profit-sharing.

KakaoBank posted a net profit of 187.3 billion won ($126 million) in the first quarter of this year, a record high on a quarterly basis. Across the broader Kakao group, first-quarter sales reached 1.94 trillion won and operating profit came in at 211.4 billion won, also record figures. The union argues that management's proposed compensation package falls short given the company's strong performance.

About 300 people, including KakaoBank union members, gathered at Kakao Azit in Pangyo at noon Tuesday for the picket rally, according to the union's own estimate. With a KakaoBank strike now a real prospect, observers say the momentum could spread to other affiliates across the broader Kakao group.

A KakaoBank spokesperson said the company is closely monitoring the situation and will continue to seek an amicable resolution through dialogue. "We will do our utmost to ensure service stability and business continuity so that customers are not inconvenienced," the spokesperson added.


won@heraldcorp.com