Kakao Workers Strike Over Bonus and Job Security Demands

Unionized workers at South Korea's Kakao initiated a four-hour strike and rally on Wednesday. Their demands include changes to the technology firm's bonus system and job security. Hundreds of workers dressed in black T-shirts and equipped with white umbrellas exited Kakao's office and marched to a rally at a nearby square in Pangyo, Gyeonggi province, beginning with a live music performance.

While the union had informed police that up to 1,200 members would take part in the rally, it proceeded peacefully and concluded at 3 p.m. Reports indicate the union is organizing a general strike set for June 29, expecting participation from all 5,000 union members, although a union representative did not comment on these reports.

The dispute at Kakao, employing around 6,000 individuals across five units, occurs against a backdrop of growing labor unrest in Asia's fourth-largest economy. This unrest surfaces as technology companies report record earnings amid a global AI boom. Recently, Samsung Electronics' union secured a bonus agreement for their chip division. Kakao, struggling to reach a wage deal with its union, faces criticisms over its compensation system, with union leaders advocating for one-off cash bonuses instead of stock units proposed by the company.