Seoul: Kakao Corp. expressed concerns on Friday that the compensation package demanded by its union could impose a significant challenge on the company's operations, following the announcement by workers of a planned strike next month. The company's statement highlighted the potential financial strain these demands could place on the organization.

According to Yonhap News Agency, the official statement was issued after Kakao's management and its labor union were unable to reach an agreement during the second round of government-mediated negotiations. The unionized workers, including employees from Kakao's headquarters, Kakao Pay Corp., and Kakao Enterprise, had previously voted in favor of a walkout.

Kakao, the operator of South Korea's widely-used messaging app, stated that the union's requested compensation package is at a level that could heavily burden the company's operations. Earlier this month, the union pointed out the company's limited compensation offers to employees, contrasting it with the growing compensation for executives despite Kakao's record profits in recent years.

Union members are advocating for a revamp of the performance-based incentive structure to incorporate restricted stock units, a form of equity compensation distributed by the company. Kakao has urged the union to find a middle ground, emphasizing the company's competitive landscape against major big tech firms with substantial financial resources.

In their statement, Kakao assured that they remain open to dialogue and are committed to preventing the issue from impacting shareholders, partners, and other stakeholders.