Kakao Union Holds Protest in Front of Court After Merger Block Fails

The labor union of Kakao held a picket protest in front of the Seoul High Court, where a hearing on the final judgment for founder Kim Beom-su is taking place, opposing the company's corporate split and governance restructuring.

According to the information and communications technology (ICT) industry today (September 23), the Kakao branch of the Korean Chemical, Food and Allied Industry Workers' Union carried out a picketing demonstration near the Seoul High Court in Seocho-gu, Seoul, condemning Kakao's corporate split and the departure of management at Tapas, its North American story platform subsidiary.

Previously, Kakao announced a corporate split dividing the company into Kakao X, a surviving entity responsible for investment and portfolio management, and a newly established entity dedicated to artificial intelligence services tentatively called Kakao AI.

In response, the union has protested, claiming there are insufficient measures to guarantee employment succession and working conditions. To block the merger of Kakao Investment into the surviving entity aimed at securing financial resources, the union allied with minority shareholders in an attempt to gather a 20 percent opposition rate, the threshold required to refer the matter to a shareholders' meeting.

However, as the opposition rate recently lingered in the 2 percent range, allowing management to proceed with the merger solely through a board resolution, the union is interpreted to have launched an off-court public opinion campaign in front of the court, coinciding with founder Kim's trial schedule.

The union is demanding a detailed explanation from management regarding the necessity of the corporate split and measures to guarantee employment.

Meanwhile, founder Kim was indicted on allegations of conspiring to manipulate SM Entertainment's stock prices, was acquitted in the first trial, and is currently undergoing his second-trial proceedings at the Seoul High Court.

(Photo provided by Kakao Union, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.