Kakao CEO apologises for failing to ease concerns over wage talks

Seoul, May 28 (IANS) The head of South Korea's platform giant Kakao apologised on Thursday for failing to ease concerns over ongoing wage talks. 

Chung Shin-a, CEO of the operator of the popular messenger service, made the remarks, a day after the labour union and the management failed to reach an agreement in their second round of mediation on wage negotiations.

"I sincerely apologise for the failure to swiftly resolve various concerns and uncertainties," Chung said in an internal notice earlier in the day, reports Yonhap news agency.

"I will redouble efforts to listen more closely, resolve differences through dialogue and come together in unity under Kakao, once again," the notice read.

Chung also mentioned a possible reorganization, saying that it is time for the company to "establish a stable framework, redefine service standards and work together to align our direction."

Kakao's Chief Product Officer Hong Min-taek is also said to have expressed his intent to resign and is expected to leave the company next month, according to industry insiders.

Hong led the controversial update of the company's messenger app, KakaoTalk, which came under fire for its Instagram-style feed.

Kakao's labour union is set to stage a demonstration near the company's headquarters in Pangyo, south of Seoul, on June 10 and has reported such plans to the police, sources also said.

Some 1,200 members are set to march near the company from 9 a.m. to 4 p.m., they added.

"We will start full-scale preparations for a walkout in June with our members, as now the matter is deemed insolvable through patience alone," Kakao's union said in an official statement, while noting that it is keeping open the possibility for further dialogue.

The latest development comes after a labour union at Kakao's headquarters and the management failed to reach an agreement in the second round of mediation Wednesday, giving the union and four others at Kakao's affiliated companies the right to collective action.

Labour and management at the IT company are said to be at odds over the company's performance-based incentive system, with the union reportedly seeking to include restricted stock unit grants, a form of equity compensation, in the official pool of performance-tied bonuses.