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Kakao faces double trouble of labour dispute and weak shares, raising concerns over AI shift

Kakao’s first-ever strike at its headquarters is fuelling concerns that its artificial intelligence transition strategy could be disrupted, with the union warning of a second walkout on June 29. The dispute centres on performance pay and RSUs, but also broader issues including restructuring-related job insecurity and perceived gaps between executive and employee compensation. Kakao shares have remained weak since the strike. The company is pursuing an AI shift for KakaoTalk while facing rising costs and internal tensions.