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Tech unions in Pangyo were considered chill. Now their labor rights fire is heating up.

Published: 08 Jun. 2025, 20:11

Naver union members hold a rally in the lobby of the company’s headquarters in Seongnam, Gyeonggi, on May 27 to protest the return of Choi In-hyuk, former chief operating officer, as head of the tech business division. [NEWS1]

The labor unions of major IT companies in Pangyo — once seen as moderate — are taking a harder stance, with three preparing to strike this month alone, marking a shift in tone across the industry.

According to IT industry sources on June 6, the labor unions at Kakao Mobility, Neople — a Nexon subsidiary and developer of Dungeon & Fighter — and software firm Hancom have declared their intent to launch collective action in June. All three failed to reach agreements after several rounds of wage and collective bargaining negotiations.

If the walkouts proceed, they would be the first strikes in each company’s history.

Historically, IT unions in Korea have been considered relatively mild compared to those in other sectors, such as manufacturing. The Ssangyong Motor strike in 2009 is considered one of Korea's most intense labor disputes, with hundreds of fired workers occupying the Pyeongtaek factory for 77 days after the company announced mass layoffs, eventually leading to the arrests of some 60 union members. Another is when GM Korea's labor union protested the closure of the company's Gunsan plant in 2018, with a mayoral candidate of Gunsan at the time even publicly shaving his head.

When Naver’s union staged what it dubbed Pangyo’s “first and last strike” in April 2019, the protest consisted of watching “Avengers: Endgame” (2019) at a nearby theater during work hours. While labor disputes have occasionally followed wage talks since then, the current wave of coordinated strike threats is unprecedented, prompting some in the industry to say, “The face of Pangyo unions has changed.”

Members of Naver’s labor union board chartered buses in April 2019 to attend a movie screening as part of a symbolic strike action. [SCREEN CAPTURE]

Why unions are angry

The companies facing threats of strikes all posted strong earnings last year. Kakao Mobility reported a net profit of 26.8 billion won ($19.7 million) in 2024, up from a loss of 83.8 billion won the previous year.

Neople saw net profit jump more than sixfold from 132 billion won to 791.4 billion won. Hancom swung from a net loss of 27.5 billion won in 2023 to a profit of 14 billion won last year.

Despite the windfalls, unions argue that workers haven’t been properly rewarded. Neople’s union, for instance, demanded the introduction of a 4 percent profit-sharing scheme, calling it a reasonable request given the company’s results. The company refused.

Meanwhile, executive compensation rose dramatically. Neople’s union said executive pay increased 10-fold on year in 2024.

Hancom’s union noted that, according to first quarter financial statements, only the CEO received a pay hike, now earning 37.5 million won per month.

Kakao’s union, Krew Union, criticized the company for maintaining large bonuses for executives even when business was poor.

“There’s a lack of clarity in the distribution standards,” said union head Seo Seung-wook. “The rules differ drastically for executives and regular employees.”

Kakao's labor union, Krew Union, holds a press conference in front of the main office of the Korea Development Bank in Yeouido, western Seoul, on May 17 to oppose the sale of Kakao Mobility to a private equity fund. [YONHAP]

Growing maturity — or growing divide?

Observers say the shift cannot be explained by pay grievances alone. Some union members argue the IT sector’s labor movement has entered a “more mature phase,” marked by stronger organization and negotiating ability.

Major Korean tech firms like Naver and Kakao only emerged in the 2000s, and formal unions were not formed until 2018. Until now, unions were largely in a formative stage — but have since “leveled up” their bargaining skills.

Cross-company solidarity has also become more common. When NCsoft’s union opposed the spin-off of four subsidiaries last November, Nexon workers joined the protest. Naver’s union likewise supported a Krew Union rally in March opposing the rumored spin-off of Daum, Kakao’s portal service.

“We’ve learned how to fight by fighting together,” said Bae Soo-chan, head of Nexon’s union. “We believe that the unions have matured compared to the past.”

Some argue that Pangyo’s characteristic decision-making structure — concentrated in the hands of a small group of executives — is one reason behind the unions’ increasingly hardline stance. They say that despite the growth of the companies, major decisions — such as spin-offs or executive hires — are still made behind closed doors, as in the early startup days.

“Even after years of labor organizing in Pangyo, management still doesn’t listen,” said Oh Se-yoon, head of Naver’s union. “Many members now feel we’ve been too passive in asserting our rights.

What’s next?

While unions frame this shift as a sign of “maturity,” some in management warn that escalating labor tensions could hurt competitiveness.

“No one cut salaries during hard times,” said one IT company executive. “But now unions are demanding sharp pay raises based on one good year. They know we can’t overhaul our compensation structure overnight, yet they’re sticking to a hardline stance.

“There’s concern that the growing militancy is fracturing the labor-management trust we’ve worked so hard to build.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG YONG-HWAN [[email protected]]