A labour union at Kakao, the operator of South Korea's dominant messaging platform, and the company's management commenced a second round of mediation before the Gyeonggi Regional Labor Relations Commission on Wednesday, 27 May, according to industry sources. The talks follow a breakdown in the first round of wage negotiations held on 18 May, with both sides yet to bridge key differences.

Strike Rights on the Line

Should the regional labour office decide to suspend the current mediation without resolution, unionised workers at Kakao's headquarters — along with unions at four of the company's affiliates — will legally secure the right to strike. The five labour unions had already voted in favour of a walkout last week after wage negotiations with management collapsed. A strike at Kakao would mark a significant disruption to one of South Korea's most widely used digital platforms.

What the Union Is Demanding

At the centre of the dispute is a push by Kakao's union to have restricted stock unit (RSU) grants — a form of equity compensation — formally included in the company's performance-based incentive pool. This demand goes beyond standard wage revision requests and reflects a broader appetite among South Korean tech workers for a share in company equity, particularly as valuations and profits have grown.

Broader Context: Samsung Sets a Precedent

The Kakao standoff comes amid wider labour unrest in South Korea's technology sector, largely ignited by the high-profile dispute at Samsung Electronics. On the same day as Kakao's second mediation, Samsung's unionised workers voted to approve a wage agreement — with 73.7 percent of the 62,616 members of its two largest unions backing the tentative deal in a six-day vote. The agreement was reached just one hour before an 18-day strike was set to begin at the world's leading memory chipmaker last Thursday.

Both sides at Samsung subsequently signed the wage agreement, with management committing to strengthen global competitiveness. Yeo Myeong-gu, head of the Device Solutions division's People Team, said: 'Starting with the conclusion of this wage agreement, labour and management will work together as one to strengthen our global competitiveness.' The Samsung resolution has eased concerns over potential disruptions to the global semiconductor supply chain.

What Happens Next at Kakao

The outcome of Wednesday's mediation session is critical. If the Gyeonggi commission suspends proceedings, Kakao's unions will be cleared to call a formal strike — a move that could affect millions of users of the KakaoTalk messaging service and ripple across the company's fintech, mobility, and content subsidiaries. Industry observers will watch whether Kakao's management follows Samsung's lead in offering a compromise before a walkout materialises.