"Explaining to Investors, Staying Silent to Employees"... Kakao Labor Union Protests Corporate Split

The Kakao labor union has raised its voice in protest, claiming that management is unilaterally pursuing a corporate split without prior explanation to employees or measures to protect employment.

The Kakao branch of the Korean Chemical, Textile and Food Workers' Union (affiliated with the Korean Confederation of Trade Unions) issued a statement today (October 13), criticizing that "management is showing contradictory behavior by explaining growth plans to investors while excluding members from discussions," and urged an immediate halt to the unilateral corporate split and a demand for substantive negotiations.

The union held a picket protest against the split at the Kakao AI Campus in Yongin, Gyeonggi Province, where management was holding a briefing session for securities analysts titled "Mid-to-long-term Growth Plans of Key Subsidiaries Regarding the Corporate Split."

The union criticized, "With zero explanation regarding the purpose and business direction of the split, this decision even raises suspicions that it is aimed at restructuring the founder's control, succession, or creating a structure favorable to future stake sales."

They further demanded transparent disclosure of changes in the interests of major shareholders before and after the split, as well as subsequent business reorganization plans.

In addition, they demanded responsible measures regarding employment stability and the succession of working conditions resulting from the split.

Their stance is that there must be no forced transfers, pressure to resign, or deterioration of working conditions not only for employees moving to the new entity Kakao AI, but also for the personnel remaining in the surviving entity Kakao X and members of affiliate corporations.

Seo Seung-wook, head of the Kakao union, said, "We cannot talk about the company's future and growth without its members," adding, "Kakao must transparently reveal who the corporate split is for and what kind of future it aims to build."

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