The Kakao labor union launched a one-day collective action on June 29, with members taking full-day leave, after failing to reach an agreement with management over performance-based compensation systems.

Kakao stated that it is operating a real-time response system to ensure the stable operation of major services, such as KakaoTalk, and to minimize inconvenience to users.

According to the information and communications technology (ICT) industry on June 29, the Kakao union is holding a "Logout Day," where members are taking the day off or logging out of internal work systems.

The union explained that the strike lasts for the entire day with no specific start or end time.

This marks the second industrial action following a four-hour partial strike held on the 10th.

As with the first strike, this collective action involves five entities: Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games.

There are approximately 2,500 union members at Kakao headquarters, and the industry estimates that the total number of participants, including those from affiliates, could reach up to 3,000.

The Kakao union stated, "About 2,100 people are participating in the strike," adding, "While some are still applying to participate today, we are not conducting additional tallies."

The union does not plan to hold any offline rallies or issue separate statements today.

Labor and management have been unable to narrow their differences for about two months since collective bargaining negotiations over performance-based compensation broke down in May.

The union is demanding performance bonuses equivalent to 10 million won, which is about 13 to 14 percent of operating profit, but management maintains that the demand is at a level that burdens company management and is difficult to accept.

The IT industry is closely watching the impact of this collective action on service operations, as it involves members stopping work for the entire day, unlike the first strike which was only a half-day.

During the first collective action, about 1,000 people from the headquarters and about 1,500 from the five entities participated, but no service disruptions occurred.

It was assessed that the impact on users was limited at the time because a significant portion of service operation tasks are automated.

However, as the union has signaled an increase in the scale of participation and the strike is being conducted as a full-day work stoppage, there is a sense of vigilance regarding the potential impact on responses to emergency situations.

Management plans to continue negotiations with the union while maintaining a real-time response system to ensure stable service operations and minimize the impact on customers.

The union also stated that it continues to engage in negotiations with management.

A Kakao official said, "We are operating a real-time response system for stable service operation and to minimize the impact on customers," adding, "We plan to continue dialogue and consultation with the union for a swift agreement."

(Photo: Yonhap News)