[Reporter’s Notebook] Pangyo Shrouded in Conflict

[Asia Economy Reporter Seungjin Lee] In Pangyo, Gyeonggi Province, the IT company hub, there have recently been remarks that "the atmosphere is not what it used to be." The Pangyo of the past, where founders gathered and developed day and night, no longer exists. As IT companies have grown larger, labor-management conflicts have also surfaced.

On the 25th, a picket protest by the Kakao labor union opposing the sale of Kakao Mobility took place at Pangyo Square. Despite the availability of air-conditioned offices and the option of remote work, employees are holding pickets and protesting under the hot sun.

As labor-management conflicts reached a peak, Ryu Geung-seon, CEO of Kakao Mobility, requested Kakao to postpone the sale. CEO Ryu announced plans to form a community and consultative body to devise a win-win solution, but significant differences in stance remain. The plan to form a consultative body is only Kakao Mobility’s proposal, and it is uncertain whether Kakao will negotiate with the union regarding the sale process.

Naver is also experiencing deepening labor-management conflicts over the treatment of its affiliates. On the morning of the 26th, the Naver branch of the Korean Confederation of Trade Unions’ Chemical, Textile, Food, and Pharmaceutical Workers’ Union (hereafter Naver branch joint statement) announced at a press briefing explaining the direction of collective action by five affiliates that they will begin strike actions for the five affiliates that failed to reach collective bargaining agreements. They demanded a 10% salary increase for new employees at these affiliates, whose starting salaries are only 50-60% of the headquarters’ starting salary, but the management proposed a salary increase rate below the demand, ultimately leading to a breakdown in negotiations.

The labor-management conflicts involving Kakao and Naver stem from a lack of communication. Kakao Mobility employees, who are the parties involved in the controversy, first learned about the sale issue through the media. This eventually led to the birth of Kakao’s first majority labor union. The situation is similar at Naver. Naver claims that since each affiliate operates independently from Naver, the conflicts are unrelated to them. However, these affiliates are wholly owned by Naver’s subsidiary Naver I&S, so they cannot be free from controversy.

Namgoong Hoon, CEO of Kakao, and Choi Soo-yeon, CEO of Naver, who took office this year, both emphasized communication in their inaugural speeches. However, labor-management conflicts have spread within just half a year. Employees hope for a corporate environment where they can focus solely on development as before. It is time for the two CEOs to reflect on the communication they emphasized in their inaugural speeches.