Kakao Bank, facing an unprecedented situation as the first strike at an internet-only bank, is signaling repercussions across the industry ahead of a one-day strike scheduled for the 31st amid labor-management conflict over the performance-based compensation system.

As of July 27, 2026, the Kakao Bank Labor Union (Kakao branch of the Chemical, Fiber, and Food Industry Union under the Korean Confederation of Trade Unions) plans to proceed with a strike on July 31st after failing to narrow differences with management over the performance-based compensation system. This is the first strike attempt since the launch of internet-only banks in 2017, drawing attention from both inside and outside the financial sector.

Both labor and management conducted discussions at the level of a 5-6% salary increase rate but failed to reach an agreement. Ultimately, no further negotiations could proceed after the Gyeonggi Regional Labor Relations Commission decided to halt mediation.

This strike is noteworthy in that it will proceed by union members using paid leave instead of large-scale collective action. Kakao Bank stated that customer service disruptions will be limited. The company's position is to deploy emergency support personnel in accordance with financial authorities' guidelines to ensure stable service operations.

[Photo=Yonhapnews]

Analysts note that this incident is not unrelated to the broader trend of strengthened performance-based compensation across the IT and tech industries. Unlike general commercial banks, internet-only banks have a high proportion of IT personnel, making this a sensitive issue as it intersects with compensation systems of IT company-affiliated financial institutions such as Kakao and Kakao Pay.

If Kakao Bank's first strike attempt materializes, it is expected to have significant ripple effects on compensation system discussions and labor-management relations at other internet-only banks such as K Bank and Toss Bank. The financial sector is calling for the establishment of new forms of labor-management relations that take into account the characteristics and growth of internet banks.

While the possibility of last-minute negotiations remains open until the scheduled strike date of the 31st, if an agreement fails, it will have symbolic significance as the first strike in internet bank history. The Kakao Bank situation is expected to become a major turning point for the compensation systems and labor-management relations of internet-only banks in the future.