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Kakao Seeks Profit-Linked Bonuses After State Mediation Filing

CryptoFrontier

2026-05-11 08:11:52

Kakao filed for state mediation on May 10 after wage talks stalled, joining Samsung Electronics, Hyundai Motor, and LG Uplus unions in seeking bonuses linked to company profit. The move follows SK hynix’s adoption of a similar model in 2025, according to The Korea Herald.

Proposed Bonus Structure

Kakao’s filing involved unions at Kakao Pay and Kakao Enterprise. The proposed payout would equal approximately 13% to 15% of Kakao’s 2025 operating profit.

Industry Benchmark

SK hynix agreed in 2025 to put 10% of annual operating profit into a bonus pool, resulting in an average payout of more than 100 million won (US$68,000) per employee in early 2026. This agreement has prompted similar demands across other sectors.

Broader Union Movement

Unions at Samsung, Hyundai, and LG Uplus are also seeking profit-linked bonuses. Hyundai Motor’s union, for instance, has sought bonuses equal to 30% of 2025 net profit.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Comment

0/400

EchoesOfRollup

· 1h ago

Union negotiations reach a deadlock and turn to national mediation; this move is quite Korean-style. However, profit-linked bonuses are also a double-edged sword for companies; when the economy is good, everyone is happy, but when it's not.

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RetroRadio

· 1h ago

From fixed salaries to profit-linked compensation, South Korea's chaebol's pay systems are changing. Kakao's decision to join now—is it just following the trend or genuinely aiming to benefit employees?

View OriginalReply0

GateUser-ebdc7d3a

· 1h ago

Is this major Korean companies collectively shifting to a profit-sharing system? SK Hynix has led the way, now Kakao, Samsung, Hyundai, and LG U+ are all following, finally allowing workers to get a slice of the pie.

View OriginalReply0