Kakao’s union chapter of the Federation of Chemical, Textile and Food Industry Trade Unions has strongly opposed the planned sale of AXZ, an in-house independent company operating the Daum portal.

On Feb. 3, the chapter issued a statement expressing deep regret over Kakao’s unilateral decision to sell its affiliate AXZ and said it strongly condemns the move.

Kakao’s board approved on Jan. 29 the signing of a memorandum of understanding to sell AXZ to the artificial intelligence company Upstage. AXZ was established in May last year and took over the Content CIC operations that run Daum in December. It began full-scale operations and moved into sale procedures a month later.

The union said the sale violates a labour-management coexistence pact signed last year. The Kakao chapter declared an all-out strike opposing restructuring at the time of the spinoff in March 2025. The company side then signed the pact on job stability along with a promise that it was not considering a sale.

The Kakao chapter criticised management for pushing ahead with the sale unilaterally without consulting those involved, even though it had pledged qualitative growth instead of artificial restructuring. It said that since job stability and sustainable growth were already agreed in the pact, those principles should be respected in this process as well.

Seo Seung-wook (서승욱), head of the Kakao chapter, said, "If Kakao truly wants to restore social trust, it should prepare measures for job stability for union members who have worked together, rather than pursue an opaque sale." He added, "We will respond firmly by mobilising all means until our demands are met."

The union demanded that the company side transparently disclose the background to the sale and its future plans and enter immediate talks. It also urged the company to clearly guarantee the transfer of employment and maintenance of working conditions for AXZ union members during the sale process.

The Kakao chapter described the situation as a crisis for the entire Kakao community and said it will mobilise all means until its demands are met.