Seoul: A labor union representing workers at Kakao Corp., a major South Korean technology company, announced on Wednesday that its members at five different divisions have voted in favor of initiating a strike. This decision comes after unsuccessful wage negotiations with the company's management.

According to Yonhap News Agency, the strike approval includes unionized workers at Kakao's headquarters and four of its affiliates: Kakao Pay, Kakao Enterprise, DK Techin, and XL Games. The union disclosed that, having secured the legal right to strike, they will now communicate the plan with their members. The union had previously sought intervention from the Gyeonggi Regional Labor Relations Commission after wage negotiations with management failed to yield an agreement.

The union is reportedly advocating for performance-based incentives, aiming for approximately 13 to 14 percent of Kakao's operating profit. Despite ongoing mediation efforts, proceedings involving Kakao have been delayed until May 27, with negotiations at the four affiliates concluding without resolution.

This development is part of a larger trend in South Korea, where employees are increasingly calling for performance-based compensation and profit-sharing. In a related situation, Samsung Electronics's largest labor union announced plans for an 18-day strike starting Thursday, following unsuccessful government-mediated negotiations over performance-based pay.