Kakao management and its union have produced a tentative deal, moving to close a wage bargaining dispute that has lasted more than two months.

The ICT industry said on Wednesday that Kakao and the Kakao branch of the Korean Confederation of Trade Unions-affiliated Chemical, Fiber, Food Industry Union, known as Crew Union, reached a tentative wage deal on Tuesday.

The union plans to hold a briefing for its members and share details of the tentative agreement. A final decision on whether to accept it will be made after a vote by members. The two sides agreed not to disclose specific terms, including the wage increase rate, until a final settlement. If the deal is approved in the vote, the two sides plan to hold a signing ceremony and conclude this year's wage talks.

The dispute erupted after the two sides failed to narrow differences over the overall annual pay increase rate, the pool for performance bonuses and whether to include restricted stock units (RSUs) worth 5 million won paid to long-serving employees in performance compensation. The union demanded separate payment of performance bonuses worth 10 million won, equivalent to about 13 to 14 percent of operating profit, as well as RSUs, but the company did not accept the demand, citing management burden and future investment capacity, among other reasons.

After talks broke down, the union stepped up pressure. About 600 members joined a rally at Pangyo Station on May 20 and secured the right to strike after a labor commission decision to halt mediation on May 27.

A four-hour partial strike involving about 1,500 members across five units then took place on June 10. It was the first partial strike since the company was founded. On June 29, the union said more than 2,100 people joined a one-day "Logout Day" by taking annual leave or time off and logging out of work systems, pushing pressure to its peak. On July 21, lunchtime picketing continued at Pangyo Azit, led by the KakaoBank union.

A Kakao official said it was true the two sides had reached a tentative agreement on this year's wage deal, but added it was difficult to explain details at this stage and that they could be provided when a final agreement is reached.

The tentative agreement has lowered the likelihood of further union action, but whether it is finalized depends on the outcome of the member vote.