Kakao Rising union action risk, limited financial impact but stay cautious, N

研报英文原文证据摘录

Kakao Rising union action risk, limited financial impact but stay cautious, N

J P M O R G A N Asia Pacific Equity Research

21 May 2026

Kakao Neutral

035720.KS, 035720 KS

Rising union action risk, limited financial impact but stay Price (21 May 26):W41,700

cautious, N Price Target (Dec-26):W50,000

Kakao’s labor-management tensions appear to have risen after the union secured Internet and Telco

ACstrike mandates across five key entities, with compensation the core dispute Stanley Yang

and job security a secondary concern amid ongoing portfolio rationalization. Our (82-2) 758-5712

labor cost analysis indicates the company’s additional incentive payment burden stanley.yang@jpmorgan.com

to be limited. A potential inflection point is the May 27 mediation, after which Benjamin Kim

Kakao HQ could obtain dispute rights—raising the probability of group-wide (82-2) 758-5580

coordinated action. Near-term operational disruption should be limited given benjamin.kim@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

platform resiliency (automation/non-union coverage), but we will Branch

monitor execution risk to the AI roadmap should dev/ops participation become

meaningful. Maintain N due mainly to lack of AI Agent progress.

• ‘Compensation’ is the major rationale behind the labor union’s

dispute. Kakao’s labor union announced strike authorization votes passed

across 5 entities: Kakao HQ (parent), Kakao Pay, Kakao Enterprise, DK

Techin, and XL Games. According to local media (e.g. Yonhap news), tensions

centered on the performance-based compensation structure in the wake of the

alleged record high performance reward to management. Local media point to

friction over performance-based pay following alleged outsized management

incentive awards.