Seungwook Seo, head of the Kakao Labor Union, is holding a solo protest against the sale of Kakao Mobility at Pangyo Station Plaza.
[Asia Economy Reporter Seungjin Lee] The Kakao labor union is resuming its signature campaign against the sale of Kakao Mobility just ten days after an emergency meeting with management. While the union claims that management has no intention of continuing the mobility business, the company denies this, deepening the conflict between the two sides.
Kakao Union: "Management Has No Will to Continue Mobility Business"
On the 6th, Kakao’s labor union ‘Crew Union’ announced that during a meeting with management, Kakao took a last-ditch stance that if the sale falls through, it will abandon the mobility business, and thus they will restart the temporarily suspended signature campaign opposing the sale of Kakao Mobility.
The union explained that it plans to hold a picket protest and press conference opposing the sale in front of Kakao Mobility and Kakao’s Pangyo headquarters, and will engage in follow-up collective actions such as collective bargaining with Kakao Mobility to improve working conditions.
On this day, the Kakao union disclosed the results of an emergency meeting held last month with Kim Seongsu, head of Kakao Community Alignment Center (CAC).
According to the union, in the first negotiation held on the 27th of last month, Kakao acknowledged the sale efforts and stated, "Kakao will remain the second-largest shareholder and design a direction to continue the business in the future." At that time, the union expressed opposition to the sale to a private equity fund, but the company maintained its position that "options other than sale to a private equity fund are not being considered."
Before the second negotiation, the union requested the company to ▲ fulfill the moral responsibility of the mobility management ▲ conduct reviews and discussions on employees and business direction ▲ explain the progress of Kakao Mobility’s social responsibility fulfillment ▲ discuss platform workers and the direction of the sale ▲ and include Kim Beom-su, head of Kakao Future Initiative Center, at the negotiation table.
However, on the 4th of this month, the company rejected the union’s requests, stating, "The final decision-maker is Kim Seongsu, chairman of the Kakao board." The company also dismissed the union’s concerns by saying, "Within Kakao as a company, further growth of mobility as a platform is impossible, and sale is inevitable for business growth," the union reported.
The union asked the company, "Is there any basis to believe the mobility business can grow if sold to a private equity fund?" but the company repeatedly stated that "there is no intention to continue the mobility business," the union pointed out.
Kakao: "No Decision Made on Sale"
The company dismissed the union’s claims, saying, "No decision has been made yet regarding the sale."
They added, "We will listen carefully to various internal and external opinions and make a decision considering the stakeholders, Kakao community’s growth, and social responsibility."
A Kakao official explained, "The growth direction Kakao envisions for mobility is to fulfill social responsibility rather than focusing on profit and scale expansion," and clarified, "It is not true that the business will be shut down if the sale does not proceed, or that the sale is inevitable."
The company plans to hold additional meetings with the union. A Kakao official said, "Although no specific schedule has been set, we will proceed with the 3rd and 4th meetings with the union in the future."
Meanwhile, recently, rumors have circulated mainly in the investment banking (IB) industry that Kakao, the major shareholder, is negotiating to sell shares of Kakao Mobility to the private equity fund MBK Partners, which has escalated conflicts between the company and the union.
When the union announced collective actions such as the signature campaign opposing the sale, on the 27th of last month, Kakao management including Kim Seongsu, head of Kakao Community Alignment Center (CAC), and Bae Jaehyun, Kakao Chief Investment Officer (CIO), stepped in for an emergency meeting with the union.
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