Kakao Bank workers to strike 5 days over stalled wage talks
Synopsis
Kakao Bank's union has called a five-day strike starting 31 August — even as the bank reports record quarterly profits of 211 billion won. Meanwhile, Hyundai Motor faces cumulative production losses of 62,000 vehicles from its own strike, its biggest walkout in a decade. South Korea's labour front is heating up on multiple fronts simultaneously.
Key Takeaways
Kakao Bank workers will strike from 31 August to 4 September over stalled wage and benefits negotiations.
The bank posted a record quarterly operating income of 211 billion won (US$143 million) in Q1, strengthening the union's case.
A previous full-day strike was held on 31 July ; parent company Kakao Corp. resolved its own three-month wage dispute earlier this month.
Hyundai Motor faces cumulative production losses of over 62,000 vehicles from its union's ongoing strike action.
Hyundai's lost sales are estimated at 2.6 trillion won (US$1.85 billion); the union and management have completed 16 rounds of talks without agreement.
Hyundai's Friday walkout will be its first eight-hour full-scale strike in 10 years .
Unionised workers at South Korea's internet-only lender Kakao Bank are set to launch a five-day strike from 31 August to 4 September, after wage negotiations with management broke down without resolution, the bank's labour union announced on Thursday, 20 August. The walkout marks an escalation in a prolonged standoff over pay raises and additional benefits.
Background to the Dispute
The labour union and Kakao Bank management have held multiple rounds of negotiations but failed to close the gap on outstanding demands. This is not the first disruption: on 31 July, unionised workers staged a full-day strike, signalling that tensions had already reached a critical point before this latest announcement.
The strike comes even as Kakao Bank reported record quarterly financials. In the first quarter of the year, the bank posted an operating income of 211 billion won (approximately US$143 million) on revenue of 1.94 trillion won — both quarterly highs. Critics argue the strong earnings make the union's wage demands harder for management to dismiss.
Parent Company Settled, Subsidiary Holds Out
Notably, workers at Kakao Corp. — Kakao Bank's parent company — and its management reached a final wage agreement earlier this month, ending a three-month dispute. The resolution at the parent level makes the continued deadlock at the banking subsidiary more conspicuous, and union leaders have pointed to the parent's settlement as a benchmark for their own demands.
Hyundai Motor Strike Compounds South Korea's Labour Unrest
The Kakao Bank standoff is unfolding against a broader backdrop of industrial action across South Korea. Hyundai Motor is expected to suffer cumulative production losses of more than 60,000 vehicles as its labour union intensifies strike action amid its own stalled wage negotiations, according to industry sources.
The automaker's union has announced four-hour partial strikes on Wednesday and Thursday, followed by an eight-hour full-scale walkout on Friday — its first such action in 10 years. The union also plans four-hour partial strikes the following Monday and Tuesday, extending the total action to five days.
Cumulative production losses from last month through 25 August are expected to reach around 62,000 vehicles, with lost sales estimated at 2.6 trillion won (approximately US$1.85 billion), according to industry sources familiar with the matter. The two sides last met for their 16th round of negotiations without a breakthrough.
What to Watch
With both Kakao Bank and Hyundai Motor facing prolonged industrial action, South Korea's labour climate is under scrutiny heading into September. For Kakao Bank, the outcome will test whether record profits translate into worker concessions — or further entrench the dispute into autumn.
Point of View
Which removes management's most obvious defence. The quick resolution at parent Kakao Corp. after three months sets an uncomfortable precedent that the subsidiary's leadership must now navigate. More broadly, simultaneous industrial action at Kakao Bank and Hyundai Motor — South Korea's most iconic automaker — suggests this is not a cluster of isolated disputes but a structural moment in South Korean labour relations, where workers in high-performing firms are pushing hard on the gap between corporate profits and wage growth. How these two cases resolve will set the tone for collective bargaining across the sector.
NationPress
20 Aug 2026
Frequently Asked Questions
Why are Kakao Bank workers going on strike?
Kakao Bank's labour union called a five-day strike starting 31 August after wage negotiations with management failed to produce an agreement on pay raises and other benefits. The union had previously staged a full-day strike on 31 July, indicating that tensions had been building for weeks.
When is the Kakao Bank strike scheduled?
The strike is scheduled to run from 31 August to 4 September. It follows an earlier one-day walkout on 31 July and represents an escalation in the union's pressure on management.
How profitable is Kakao Bank despite the labour dispute?
Kakao Bank posted record quarterly results in Q1, with operating income of 211 billion won (US$143 million) on revenue of 1.94 trillion won — both all-time quarterly highs. The strong performance has reinforced the union's position that the bank can afford higher wages.
What is happening with Hyundai Motor's strike?
Hyundai Motor's labour union is staging a series of partial and full-scale strikes over stalled wage talks, including an eight-hour walkout — its first in 10 years. Cumulative production losses are expected to exceed 62,000 vehicles, with lost sales estimated at 2.6 trillion won (US$1.85 billion).
Has any part of the Kakao group settled its wage dispute?
Yes. Workers at Kakao Corp., the parent company of Kakao Bank, reached a final wage agreement with management earlier in August, ending a three-month dispute. The subsidiary's union has pointed to this settlement as a reference point for its own demands.
