Seoul: The head of South Korea's platform giant Kakao Corp. has publicly apologized for not alleviating concerns related to ongoing wage negotiations. Chung Shin-a, the CEO of the company that operates the popular messenger service, issued the apology following a failed attempt to reach an agreement between the labor union and management during their second round of mediation.

According to Yonhap News Agency, Chung expressed regret over the inability to swiftly address various concerns and uncertainties. In an internal notice, she emphasized her commitment to improving communication, resolving differences through dialogue, and fostering unity within Kakao. Chung also hinted at a potential reorganization, indicating the need for the company to establish a stable framework, redefine service standards, and align its direction.

Adding to the internal turmoil, Kakao's Chief Product Officer, Hong Min-taek, has reportedly expressed his intent to resign, with plans to depart the company next month. Hong previously led a controversial update to KakaoTalk, the company's messaging app, which faced criticism for its Instagram-style feed feature.

In response to the ongoing wage negotiation issues, Kakao's labor union is preparing to stage a demonstration near the company's headquarters in Pangyo, south of Seoul, on June 10. The union, consisting of approximately 1,200 members, plans to march from 9 a.m. to 4 p.m., and has informed the police of their intentions. The union's official statement emphasizes their readiness to prepare for a walkout in June, although they remain open to further dialogue.

The labor dispute stems from a disagreement over Kakao's performance-based incentive system. The union is pushing for the inclusion of restricted stock unit grants, a form of equity compensation, within the performance-tied bonus pool. The inability to reach an agreement during the second round of mediation has granted the union and four other unions at Kakao's affiliated companies the right to take collective action.