Labor unions of Naver and Kakao have urged for joint bargaining at the parent company level, criticizing that while parent companies exercise major decision-making authority during affiliate separation and reorganization processes, they evade employer responsibilities regarding working conditions.

The unions stated that parent companies continue to ignore requests for bargaining even after the implementation of the amended Trade Union Act, and demanded institutional improvements alongside legal responses, such as filing correction requests with labor committees.

The Naver union, joined by the Kakao union, held a joint press conference today (October 1st) at the Communication Hall of the National Assembly in Yeouido, Seoul, alongside the office of Democratic Party of Korea lawmaker Lee Yong-woo, claiming, "Parent companies are only exercising authority through the splitting of affiliates while dodging responsibility," and arguing that "the amended Trade Union Act (Yellow Envelope Act) implemented in March of this year is being neutralized in industrial fields."

The unions announced that following the enforcement of the amended trade union law, they requested joint bargaining from parent companies Naver and Kakao respectively, but management has refused, citing that they "do not have practical authority."

They pointed out that due to the characteristics of the IT industry, even if business organizations are divided into multiple legal entities, the authority to determine core working conditions rests with the parent company, making negotiations at the individual affiliate level clearly limited.

Lawmaker Lee Yong-woo pointed out, "While core decisions such as human resources, finance, compensation systems, introduction of algorithms and AI, and business reorganization and sales are made by the parent company, business organizations are split into dozens of legal entities."

Shin Hwan-seop, head of the Chemical, Textile and Food Workers' Union, also urged, "To improve powerless negotiations where those without decision-making authority show up and just waste time, the government must rectify this in accordance with the intent of Article 2 of the Trade Union Act."

Oh Se-yoon, head of the Naver chapter, criticized, "If even an affiliate in which Naver holds a 100 percent stake and relies on entirely for revenue is said not to be an employer, where on earth is a principal contractor that can be an employer under the Yellow Envelope Act?"

Chapter head Oh pointed out, "The National Assembly must address the actual state of the law's implementation during this parliamentary audit, push for re-legislation if necessary, and 'after-sales service' for the Yellow Envelope Act is urgent."

The Naver union plans to take legal action by filing a "correction request for public announcement of joint bargaining request facts" with the Gyeonggi Regional Labor Relations Commission tomorrow (October 2nd).

Seo Seung-wook, head of the Kakao chapter, also emphasized, "They accumulated profits in the process of creating and reorganizing numerous affiliates, but when it comes to holding them accountable, they hide behind individual legal entities and pass on employment instability to workers."

Chapter head Seo particularly criticized, "Although founder Kim Beom-su, the head of the corporate group, is involved in core decision-making such as the acquisition of SM Entertainment under the title of Future Initiative Center head, the lines of authority and responsibility regarding changes in working conditions remain ambiguous."

(Photo: Capture from live broadcast of the press conference, Yonhap News)