As a labor dispute at Kakao drags on, Naver has ended wage negotiations early with its labor union.

The Naver branch of the Korean Federation of Chemical, Textile and Food Industry Trade Unions said on Sunday that Naver management and labor tentatively agreed to raise wages by 5.3 percent this year. The union said it drew up the deal after intensive negotiations since early this year.

Naver has declared artificial intelligence (AI) as a core revenue source this year. It previously said on a first-quarter earnings conference call that it would begin integrating advertising into AI services from the third quarter to build a full-fledged revenue model. With wage talks concluded early without filing for mediation, there is an assessment that it has secured conditions to focus on pushing its AI business.

By contrast, Kakao’s wage agreement collapsed as management and labor failed to narrow differences over the detailed structure of compensation programs such as performance pay. The union has filed for mediation with the Gyeonggi Labor Relations Commission, and the mediation date is May 18. The union plans to hold a rally at Pangyo Station plaza on May 20 and begin collective action, and difficult negotiations are continuing.