Kakao CEO apologises over wage talk failures as union plans June protest
Synopsis
Kakao's CEO has issued a rare internal apology as the company's second mediation attempt over wages collapsed, its Chief Product Officer heads for the exit, and 1,200 union members prepare to march in June. The dispute over RSU grants as performance bonuses is testing one of South Korea's biggest tech platforms at a moment of deep internal strain.
Key Takeaways
Kakao CEO Chung Shin-a apologised on 28 May for failing to resolve concerns over ongoing wage negotiations.
The union and management failed to agree in their second round of mediation on Wednesday, granting collective action rights to five unions across Kakao entities.
Chief Product Officer Hong Min-taek has reportedly signalled his resignation and is expected to leave next month.
Approximately 1,200 union members plan to demonstrate near Kakao's Pangyo headquarters on 10 June from 9 a.m. to 4 p.m.
The core dispute centres on whether restricted stock unit (RSU) grants should be included in the official performance-bonus pool.
Kakao CEO Chung Shin-a issued a public apology on Thursday, 28 May, acknowledging the company's failure to resolve mounting concerns stemming from protracted wage negotiations with its labour union. The apology came a day after the union and management failed to reach any agreement during their second round of mediation on wage talks.
What the CEO Said
In an internal notice circulated earlier in the day, Chung wrote: 'I sincerely apologise for the failure to swiftly resolve various concerns and uncertainties.' She added that she would 'redouble efforts to listen more closely, resolve differences through dialogue and come together in unity under Kakao, once again.'
Chung also signalled a possible internal reorganisation, stating it is time for the company to 'establish a stable framework, redefine service standards and work together to align our direction.'
CPO Resignation and KakaoTalk Controversy
Kakao's Chief Product Officer Hong Min-taek has reportedly expressed his intent to resign and is expected to leave the company next month, according to industry insiders. Hong led the widely criticised update of the company's flagship messenger application, KakaoTalk, which drew significant backlash for introducing an Instagram-style feed feature that users found intrusive.
Union Plans June Demonstration
The labour union at Kakao's headquarters has announced a demonstration near the company's campus in Pangyo, south of Seoul, on 10 June, and has formally notified police of the planned action. Approximately 1,200 members are set to march near the company premises from 9 a.m. to 4 p.m.
In an official statement, the union declared: 'We will start full-scale preparations for a walkout in June with our members, as now the matter is deemed insolvable through patience alone,' while keeping open the possibility for further dialogue.
What the Dispute Is About
The breakdown in Wednesday's second mediation round has granted the union — along with four others at Kakao's affiliated companies — the legal right to collective action. At the core of the dispute is the company's performance-based incentive system. The union is reportedly pushing to have restricted stock unit (RSU) grants — a form of equity compensation — formally included in the pool of performance-tied bonuses, a demand management has not accepted.
This comes amid broader turbulence at one of South Korea's most prominent technology platforms, with leadership instability and product missteps compounding the labour standoff. How the company navigates the June flashpoint could set the tone for its internal culture and public standing through the rest of the year.
Point of View
Governance turbulence, and a workforce that no longer trusts management to act in good faith. The KakaoTalk feed controversy eroded user confidence; the CPO's exit compounds the reputational damage. The union's decision to keep dialogue open while simultaneously mobilising 1,200 members for a June march is a calculated pressure play — and the company's response so far has been apologies without concrete concessions. For a platform whose dominance in South Korea's messaging market was once unassailable, this level of internal fracture is a warning signal that structural fixes, not just soothing notices, are overdue.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did Kakao's CEO apologise?
CEO Chung Shin-a apologised on 28 May for the company's failure to swiftly resolve concerns arising from stalled wage negotiations. Her apology followed the collapse of a second mediation round between the labour union and management the previous day.
What is the Kakao wage dispute about?
The dispute centres on the company's performance-based incentive system. The union is reportedly seeking to have restricted stock unit (RSU) grants formally included in the pool of performance-tied bonuses, a demand management has not yet accepted.
What action is Kakao's union planning?
The union has announced a demonstration near Kakao's Pangyo headquarters on 10 June, with around 1,200 members set to march from 9 a.m. to 4 p.m. It has also signalled preparations for a full-scale walkout while keeping dialogue open.
Why is Kakao's CPO Hong Min-taek resigning?
Chief Product Officer Hong Min-taek has reportedly expressed his intent to resign and is expected to leave next month, according to industry insiders. He led the controversial KakaoTalk update that introduced an Instagram-style feed, which drew widespread criticism from users.
What happens now that mediation has failed?
The failure of the second mediation round has granted the Kakao headquarters union and four affiliated company unions the legal right to collective action under South Korean labour law. The union has said it will begin full-scale walkout preparations in June.
