Attendees enter the second mediation meeting between Kakao management and labor held at the Gyeonggi Regional Labor Relations Commission in Suwon, Gyeonggi Province on the 27th. [Joint Press]With Kakao headquarters' management and labor failing to reach an agreement in their second mediation meeting on the 27th, the Kakao labor union is expected to go on strike next month.

According to sources in the information and communication technology (ICT) industry, Kakao headquarters' management and labor could not narrow down their differences on key issues during the second mediation meeting held at the Gyeonggi Regional Labor Relations Commission at 3 PM, resulting in a decision to suspend mediation.

The Kakao headquarters labor union resumed the meeting around 7:30 PM after a recess, continuing marathon negotiations for eight hours, but ultimately failed to reach an agreement.

Previously, Kakao headquarters' management and labor had differing stances on whether to compensate employees with 13-14% of last year's operating profit as performance bonuses, and whether to include restricted stock units (RSUs) worth 5 million won in performance bonuses.

In the second mediation on this day, discussions continued regarding the performance bonus compensation structure and the inclusion of RSUs, but no common ground was found.

Consequently, the union has secured the right to strike legally, and Kakao faces its first-ever strike crisis since its establishment.

Furthermore, with four affiliates, including Kakao Enterprise, Kakao Pay [377300], DK Techin, and XL Games, having already secured the right to strike after failing to reach mediation, and having voted in favor of a strike, a joint general strike encompassing both the headquarters and its affiliates is also a possibility.

Kakao headquarters had already conducted a strike vote before the second mediation, and since it passed, they have secured the right to strike, making strikes and other labor actions possible.

A representative from the Kakao labor union stated, "We are planning a strike for next month," adding, "Specific details still need to be discussed."

They further commented, "Since the strike vote has already passed, there is no need for separate member opinion gathering procedures."

Additionally, they stated that it is difficult to share specific figures and negotiation/mediation details, such as the 10 million won performance bonus and whether RSUs will be included.

However, the union indicated that they are always open to dialogue with the company.

While Kakao Mobility conducted a partial strike in June last year, there has never been a strike at the headquarters level. Therefore, if a strike occurs next month, it will be the first in Kakao's history.

With the final breakdown of this second mediation, the ICT industry is keenly watching whether this will disrupt Kakao's business plans, which include pursuing new AI ventures and regaining external trust.

A Kakao representative said, "The company will keep its communication channels open with the union even after the mediation process and will strive to reach an agreement."