[Alpha Biz= Kim Jisun] Kakao's labor union has expressed strong opposition to the company's plan to spin off the content CIC (Corporate Independent Company) that operates the Daum portal service, and has announced plans for a rally.
The Kakao branch of the Federation of Chemical, Textile, Food Workers’ Unions (화섬식품노조) will hold a press conference and rally in front of Kakao's Pangyo office in Seongnam, Gyeonggi Province, on March 19 to voice their opposition to the spin-off.
Earlier, on March 13, Kakao's Content CIC shared with employees its intention to proceed with the spin-off to better compete in the portal, search, and content sectors during a town hall meeting.
The union claims that the company informed staff of the spin-off decision unilaterally and without prior discussion, suggesting the possibility of selling the new spin-off entity without providing any detailed plans.
The union stated, "The Content CIC management has declared their intention to proceed with the spin-off without disclosing a concrete operational plan for the new entity. They are even considering selling the shares to promote the activation of the portal service. This decision is essentially equivalent to a sale," they added.
If the spin-off goes ahead, it is expected that around 1,000 employees, including those working on the Daum service and affiliate companies, will face job insecurity.
The union warned, "Kakao's crisis began with reckless and unprepared spin-offs. Irresponsible spin-offs and sales will worsen everyone's working conditions, create discord and conflicts among colleagues, and ultimately lead to the abandonment of the crew."
The union also mentioned that negotiations for wage increases are ongoing with 11 of Kakao's subsidiaries, but the company has refused to negotiate on performance bonuses, leading to a prolonged deadlock in talks.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
