The KakaoBank labor union has gone on strike for the first time since the launch of internet-only banks, demanding a restructuring of the performance compensation system.

According to the Kakao branch of the Chemical, Textile and Food Workers' Union under the Korean Confederation of Trade Unions, more than 700 out of approximately 1,000 union members at KakaoBank participated in the strike today (the 31st).

This strike is being carried out by union members taking annual leave to step away from work, with no separate rallies or similar events being held.

During this year's wage negotiations, KakaoBank management and the labor union failed to narrow their differences regarding performance bonus payouts and annual salary increases.

The Gyeonggi Regional Labor Relations Commission decided to suspend mediation on the 20th, concluding that it was difficult to continue mediation due to the wide gap between the two sides. Following this, the KakaoBank union went through related procedures, such as a vote for or against labor disputes, before deciding on the strike.

It is reported that there have been no additional negotiations between KakaoBank management and the labor union since the suspension of mediation.

This strike marks both the first strike since KakaoBank's launch and the first-ever strike by an internet-only bank in South Korea.

However, due to the nature of internet banks that do not operate physical branches for face-to-face services, the impact on services experienced by customers is limited.

It is reported that no cases of service complaints related to the strike have been filed yet.

The end of July is a period when summer vacations are concentrated for KakaoBank employees, and it is also a time when the bank normally operates under a system that accounts for staffing gaps.

Regarding the negotiation situation with the union, the company stated, "We are closely monitoring the situation, and the company is continuously striving to find a smooth resolution through dialogue."

(Photo: Yonhap News)