Kakao has recently faced scrutiny over its labor practices after the Ministry of Employment and Labor confirmed multiple violations of the Labor Standards Act following a labor inspection. Allegations arose last September when Kakao was found to be in violation of the 52-hour workweek regulation, with employees reportedly working up to 64 hours without proper compensation. The union's complaints highlighted significant overwork, including instances where certain employees logged close to 300 hours in a month. The labor inspection identified additional infractions including delayed and unpaid overtime wages, unutilized leave payouts, and failures to comply with statutory requirements regarding maternity leave for employees' spouses.

Moreover, this is not the first time Kakao has been in trouble for labor law violations. In May 2021, a similar inspection revealed that Kakao had been forcing some employees to work beyond the legal limit of 52 hours per week and failing to record overtime accurately. The union has noted a concerning deterioration in working conditions over the past four years, particularly with an increase in reported workplace harassment instances. A recent survey conducted among union members indicated that 68% had witnessed abusive behavior from superiors, marking a significant rise from 38% reported in a similar corporate culture assessment conducted by the labor ministry in 2021.

The labor ministry is planning administrative actions against Kakao in light of the recent findings, which may include corrective measures and penalties. This situation places Kakao under intense scrutiny as it seeks to balance its ambitious corporate goals with the welfare and rights of its employees, who have been voicing their concerns louder as conditions appear to worsen. The union's call for better labor practices and working conditions reflects a broader concern prevalent among many tech companies in South Korea that are under similar pressure from their workforce.