Naver union protests against the return of former COO Choi In-hyuk. (Image courtesy of Naver union)
SEOUL, June 16 (Korea Bizwire) — Labor tensions are intensifying at South Korea’s top platform companies as unions at Naver and Kakao step up protests, raising fresh questions about corporate governance and workforce management in the country’s fast-evolving tech sector.
According to the ICT industry on Sunday, Naver’s union, part of the Korean Federation of Chemical & Textile Food Workers’ Unions, announced plans for a third protest on July 2 against the reinstatement of Choi In-hyuk, head of Naver’s Tech Business unit.
Choi, a founding member of Naver and close aide to board chair Lee Hae-jin, resigned in 2021 after being held partly responsible for a workplace bullying incident that led to an employee’s death.
Naver’s union, which drew around 260 members to its second rally, says it expects to double participation in the upcoming protest. The group claims the company is covertly facilitating Choi’s return and holds him accountable for past toxic workplace practices. Naver has yet to issue a formal response or engage the union in dialogue.
The union has also opposed Naver’s proposed “level-based” employee evaluation system, which would categorize staff into seven tiers based on performance and expertise. The new structure is set to roll out in 2026, part of a broader effort to boost competitiveness in the AI-driven economy.
Analysts note the reform could be necessary in a global race for artificial intelligence leadership, though it risks alienating workers.
Kakao Union Demonstrators Rally, Chanting Slogans for Labor Rights. (Image courtesy of Yonhap)
Kakao is facing similar turmoil. In March, when the company revealed plans to spin off its Daum portal business, its union staged a hunger strike, citing job insecurity. Although an agreement was eventually reached and the spin-off is now proceeding, labor unrest continues.
Most recently, union members at Kakao Mobility launched a partial strike on June 11 after wage negotiations failed, signaling renewed labor strife within the broader Kakao group.
Traditionally, South Korea’s IT sector has seen low unionization, partly due to its fluid, high-turnover culture. But that is changing rapidly. Union membership at both Naver and Kakao now exceeds 50%, underscoring a shift in the balance of power and a growing assertiveness among tech workers.
Experts warn that how these companies navigate labor relations will be critical to maintaining their competitive edge, especially as they accelerate investment in AI.
“In a time of national AI competition, Naver and Kakao must rally their employees to survive in the global market,” said Lee Jong-sun, professor at Korea University’s Graduate School of Labor Studies. “Executives need to genuinely listen to why so many employees disagree.”
However, some argue that platform companies, given their fast-paced and customer-driven nature, cannot afford to yield to all union demands.
“With global tech giants dominating the AI space, Korean platforms are competing on an uneven playing field,” said Jeon Sung-min, business professor at Gachon University. “Management has no choice but to move boldly on AI transformation without being paralyzed by constant union resistance.”
As South Korea’s digital champions chart their course through workplace reforms and AI innovation, the question remains whether labor harmony can coexist with the urgency of technological disruption.
M. H. Lee (mhlee@koreabizwire.com)
