Alphabiz - Kakao CEO Jeong Shin-a Faces First Major Crisis as Labor Union Plans Strike

Jeong Shin-a, CEO of Kakao. (Photo: Yonhap News Agency)

[Alpha Biz= Ellie Kim] Jeong Shin-a, CEO of Kakao, is facing her biggest challenge since taking office, as escalating labor disputes threaten to lead to the company’s first-ever headquarters strike.

Jeong, who was brought in to spearhead management reforms across the Kakao Group, is now confronted with intensifying tensions with the labor union over wage negotiations, compensation structures, and working conditions. The situation comes at a critical time, as she recently secured her reappointment and set a strategic goal of transforming Kakao into an “execution-oriented artificial intelligence platform” centered on KakaoTalk.

According to industry sources on June 8, Kakao’s labor union has announced a four-hour partial strike on June 10, involving five key affiliates: Kakao, Kakao Pay, Kakao Enterprise, DK Techin, and XL Games. The union also plans to hold a rally and march near Pangyo Station in Seongnam, where Kakao’s headquarters is located.

The dispute stems from disagreements over 2026 wage negotiations, the establishment of compensation systems, and demands for greater transparency in executive appointments. After failing to reach an agreement through internal negotiations, the unions of the five entities filed for mediation with the Gyeonggi Regional Labor Relations Commission. However, when mediation efforts—including those involving Kakao headquarters—collapsed on May 27, the union secured the legal right to strike.

All five unionized entities approved strike action, completing the necessary procedures for collective action.

Compensation has emerged as a key sticking point. Industry sources indicate that the union has demanded performance bonuses equivalent to 13%–15% of Kakao’s operating profit from the previous year.

Another major issue is whether restricted stock units (RSUs), valued at approximately 5 million won per employee, should be included as part of performance-based compensation. While management argues that RSUs should be counted toward total compensation, the union maintains that they should be treated separately.

As tensions escalate, Jeong now faces mounting pressure to both resolve internal conflicts and present a clear growth strategy for the company.

Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)