SEOUL, May 29 : South Korea's Kakao Corp said on Friday union demands for profit sharing were unrealistic and "a big burden" on management as the tech company seeks to focus on future business and investor interests.The union has been in government-mediated talks with management for a new pay deal, which ended without an agreement this week. Union members across Kakao Corp and four affiliates have backed a plan to stage a strike.Kakao Corp said compensation for its workers should align with the company's ability to invest in future business and elevate investor interests."Today Kakao is in competition with global AI big tech firms that are backed by enormous capital," the management said in a statement. "Now is the time to focus all our resources for survival and the future."
The dispute over compensation at the operator of South Korea's dominant chat app comes in the wake of a deal clinched by Samsung Electronics' union in South Korea. The agreement ties bonuses for Samsung's chip division to a 10.5 per cent share of its semiconductor operating profit. Kakao's union in May questioned why executive compensation had continuously increased, while staff had only received "limited compensation." The union has not disclosed its exact demands, but previously said that one option workers had discussed with management was allocating 10 per cent of operating profit to bonuses.
