Seoul: The labor union of Kakao Bank, an internet-only bank, has reaffirmed its decision to initiate a five-day strike next week. This move comes as negotiations with the bank's management over wage increases and other benefits have seen little progress. The union is urging management to present a more appealing wage deal in order to prevent the strike.

According to Yonhap News Agency, the discussions between the labor union and Kakao Bank's management have not resolved the outstanding differences regarding pay raises and benefits. The union has previously announced that the strike will commence on August 31 and conclude on September 4. This planned strike follows a full strike by unionized workers on July 31.

In the first quarter of the year, Kakao Bank reported an operating income of 211 billion won (approximately US$143 million) with revenue reaching 1.94 trillion won, marking both figures as quarterly highs. Meanwhile, unionized workers at Kakao Bank's parent company, Kakao Corp., reached a final wage agreement earlier this month after a three-month-long dispute.

Additionally, on Wednesday, unionized workers from Kakao affiliates, including Kakao Bank, expressed their intent to oppose the parent company's plan to spin off its chat-app-related businesses. The head of the affiliate-wide union criticized the management's decision, accusing it of trying to avoid accountability for what they describe as years of failed management. The workers staged a collective action near the company's headquarters in Pangyo, south of Seoul, to voice their concerns.

Last week, Kakao announced its intention to divide the company into two separate entities, KakaoAI and KakaoX, as part of its efforts to enhance its artificial intelligence capabilities.