Members of Crew Union, the Kakao chapter of the Korean Chemical, Textile, Food and Allied Workers' Union, chant slogans at a rally at Pangyo Station Square in Seongnam, Gyeonggi, on May 20. The union holds the rally to demand management take responsibility for the breakdown of wage negotiations. [NEWS1]

A labor union at Kakao, the operator of Korea's popular messenger service, and the company's management failed to reach an agreement in a second round of mediation with the Gyeonggi Regional Labor Relations Commission on Wednesday, industry sources said.

The mediation procedures came after the two sides failed to narrow differences in the first round of wage talks held on May 18, according to sources.

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With the breakdown of Wednesday's mediation, unionized members at Kakao's headquarters have secured their right to strike, along with unions at four of the company's affiliates, raising the possibility of the company's first-ever strike since its founding.