SEOUL — Kakao CEO Chung Shin-a apologized Thursday after the South Korean platform company failed to ease employee concerns surrounding ongoing wage negotiations.
Chung, who leads the operator of the popular KakaoTalk messaging service, made the remarks a day after the company and its labor union failed to reach an agreement in their second round of mediation.
“I sincerely apologise for the failure to swiftly resolve various concerns and uncertainties,” Chung said in an internal notice, according to Yonhap news agency.
“I will redouble efforts to listen more closely, resolve differences through dialogue and come together in unity under Kakao, once again,” the notice said.
Chung also signaled a possible reorganization, saying it was time for the company to “establish a stable framework, redefine service standards and work together to align our direction.”
Kakao Chief Product Officer Hong Min-taek has also reportedly expressed his intention to resign and is expected to leave the company next month, according to industry insiders.
Hong led a controversial update of KakaoTalk that drew criticism for introducing an Instagram-style feed to the messaging app.
Kakao’s labor union is planning to stage a demonstration near the company’s headquarters in Pangyo, south of Seoul, on June 10, sources said. The union has reported the planned demonstration to police.
About 1,200 union members are expected to march near the company’s headquarters from 9 a.m. to 4 p.m.
“We will start full-scale preparations for a walkout in June with our members, as now the matter is deemed insolvable through patience alone,” Kakao’s union said in a statement, while adding that it remained open to further dialogue.
The dispute escalated after the union at Kakao’s headquarters and management failed to reach an agreement in the second round of mediation Wednesday. That outcome gave the headquarters union and four unions at Kakao affiliates the right to collective action.
Labor and management are reportedly divided over the company’s performance-based incentive system. The union is seeking to include restricted stock unit grants, a form of equity compensation, in the official pool of performance-based bonuses. (Source: IANS)
