Kakao expressed regret over its labour union’s warning of strike action in June, saying it cannot realistically accept the demands because of management burdens and the need to enhance shareholder value.

Kakao on May 29 released a statement titled "Position on the suspension of wage negotiation mediation" and set out its official stance on the union’s request for a performance compensation plan. Mediation for Kakao’s 2026 wage talks at the Gyeonggi Labor Relations Commission on May 27 was suspended after labour and management failed to reach a final agreement.

Kakao said it has participated in negotiations in good faith to improve the stability of employee compensation, but explained that the total scale of the performance compensation plan demanded by the Kakao branch of the Korean Chemical Textile Food Industry Workers' Union, known as Crew Union, would be a major burden on the company’s management when viewed against operating profit.

The company cited competition with global artificial intelligence big tech firms with vast capital strength and stressed focusing capabilities on survival and the future.

Kakao said, "Performance compensation for crew should be carried out in a balanced way at a sustainable level, taking into account both the ability to invest for the future and enhancing shareholder value," and added, "From the company’s standpoint, which must secure future growth engines and raise shareholder value, it is a burden that is realistically difficult to bear."

It also drew a line on concerns about possible service disruptions if strike action occurs. As a platform company, it said it will maintain service stability in any situation to support the businesses of users, small business owners and partners. To that end, it plans to have the necessary response system in place and focus on stable service operations.

Kakao said, "In the process of overcoming internal and external difficulties and protecting the trust of shareholders and users, labour and management cannot be separate," adding, "We will keep the path of dialogue open until the end and do our best to ensure there is no impact on shareholders, partners and stakeholders."