Kakao Bank's labor union reaffirms 5-day strike next week

Seoul, Aug. 26 (Yonhap) -- The labor union representing employees at internet-only banking giant Kakao Bank has warned that a five-day strike will commence from August 31 to September 4 if wage negotiations with management fail to yield a favorable outcome. The union and Kakao Bank's management have been locked in discussions pertaining to a pay increase and additional benefits, but have yet to reach a consensus on key points.

Earlier this month, the unionized workers at Kakao Bank's parent company, Kakao Corp., reached a final agreement on wages following a three-month standoff. However, the union of the bank's employees insists that the management should present more compelling wage proposals to prevent the impending strike.

Kakao Bank, which recorded an operating income of 211 billion won (US$143 million) and revenue of 1.94 trillion won in the first quarter of the year, both of which were quarterly highs, remains the epicenter of the labor dispute. The bank's employees argue that the management is attempting to evade accountability by splitting the company, thus avoiding responsibility for the years of poor management that have persisted within the organization.