Pangyo: Unionized members at Kakao Corp. were set to stage its first walkout in the company's history Wednesday, demanding higher bonuses and profit sharing.

According to Yonhap News Agency, the walkout and a rally will occur near the headquarters of the messenger app operator in Pangyo, south of Seoul, from 10 a.m. to 3 p.m. Approximately 600 members from five units of Kakao, including its headquarters, Kakao Pay, and Kakao Enterprise, are expected to participate, as reported by industry insiders.

The union's decision to strike follows unsuccessful attempts to resolve differences in two rounds of wage talks mediated by the government last month. Unionized members are reportedly demanding 13 to 14 percent of last year's operating profits as performance-based incentives. They are also seeking to redesign the compensation structure to include restricted stock units, a type of equity compensation, in the official bonus pool.

The management has yet to accept these demands, arguing that meeting them could impose a "huge burden" on the company's operations. Despite the impending walkout, industry watchers expect a limited impact on Kakao's services, such as the messenger app KakaoTalk, as core services are largely automated and essential personnel remain on duty to handle potential issues.

"We will prepare necessary response systems and do our utmost to ensure stable service operations," an official from Kakao's management stated.