Naver and Kakao Employees May Be Upset as First-Half Pay Revealed: Soo Yeon Choi Earned 2.667 Billion Won, Shina Chung 1.209 Billion Won

사진 확대 Naver CEO Soo Yeon Choi, right, and Kakao CEO Shina Chung. [News1]

The first-half compensation of executives at Naver and Kakao, the two giants of South Korea’s information technology industry, has been disclosed.

According to the Financial Supervisory Service’s Data Analysis, Retrieval and Transfer System (DART) on the 14th, Naver CEO Soo Yeon Choi received 2.667 billion won in the first half alone. That was up 4.6%, or about 117 million won, from 2.55 billion won in the same period last year. The breakdown included 550 million won in salary, 1.43 billion won in bonuses, 655 million won in restricted stock units (RSUs), or 3,250 shares, and 32 million won in other labor income. The reference price for the RSUs was 201,500 won.

Choi received a positive evaluation for meeting key performance targets, including operating revenue and operating profit, and for proactively proposing and implementing AI across services, creating a virtuous cycle that linked those efforts to business results. She was also credited with expanding the foundation for global business and increasing strategic investment in future core areas.

Lee Hae-jin received 1.598 billion won, the same amount as a year earlier. The package consisted of 770 million won in salary, 728 million won in bonuses, and 6 million won in other labor income. The company said the amount reflected his role as founder and board member in strengthening the governance structure and setting a long-term direction.

사진 확대 Naver CEO Soo Yeon Choi, left, and Kakao CEO Shina Chung. [News1]

At Kakao, CEO Shina Chung received 1.209 billion won. The total included 500 million won in salary, 706 million won in bonuses, and 3 million won in other labor income. She met both financial and strategic performance targets, as well as environmental, social and governance (ESG) management goals, by strengthening services and competitiveness. She also played a central role in the group’s risk response and in setting long-term business direction while serving as both Kakao CEO and chairperson of the CA Council.

Mintaek Hong, the chief product officer who left amid leadership controversy during the major overhaul of KakaoTalk, received 2.816 billion won. The package consisted of 314 million won in salary, 628 million won in bonuses, 1.556 billion won in other labor income, and 318 million won in severance pay.

Hong’s employment was officially terminated on May 31, but his performance bonus was calculated based on the previous year’s quantitative and qualitative factors. He also received incentives under a retention bonus contract that required him to remain with the company for a set period after joining.

사진 확대 [ChatGPT]

As the compensation details for Naver and Kakao executives became public, a sense of relative deprivation among employees appears to be deepening. Naver is in conflict with its labor union after saying it would freeze salaries at its subsidiaries. A first-ever strike since the company’s founding is even being discussed.

At Kakao, separate-account revenue rose 3.3% from a year earlier last year, but operating profit fell 10.5%. In the first quarter of this year, revenue fell 3.5% from the previous quarter and operating profit slipped 6.7%. Even so, critics say executives are taking large bonuses while asking employees to make sacrifices in the name of efficiency.

Multiple sources in the information technology industry said, “Tech companies are cutting costs and employee benefits under the pretext of emergency management, yet they remain generous to executives.” They added, “If they fail to properly reassure employees who are demanding job security and fair performance-based compensation, they should be prepared for a vicious cycle of talent outflows and lower productivity.”

This article has been translated by GripLabs Mingo AI.