Employment Instability Strikes Again... Pangyo Game Industry 'In Turmoil' [Buaeri's Game Dictionary]

Photo by Nexon Union Provided

[Asia Economy Reporter Buaeri] Employment insecurity in the gaming industry has once again come to the surface.

According to the gaming industry on the 5th, Nexon's labor union is protesting against the suspension and wage reduction measures imposed on 16 employees. According to the union, Nexon issued a three-month suspension order last month to 16 employees who had been waiting for a transfer placement for one year and decided to pay only 75% of their wages. The condition is that they undergo self-development using the 2 million KRW education expenses provided by the company and then take a re-employment interview.

Baesu-chan, head of Nexon's labor union branch, stated, "When internally selected employees are reassigned, there should be a goal presented and reassignment should occur if satisfied, but this is like starting from scratch and job hunting again," adding, "The meaning of being hired as a regular employee is fading."

The company claims it has provided relatively generous support. The employees in question had been in the transfer placement period for over a year and had applied for almost all available positions. A Nexon representative explained, "This suspension is intended to improve work capabilities, and the candidates were selected based on comprehensive evaluations including job competency and on-site placement assessments for those who have been in the transfer placement period for over a year," adding, "The purpose is to allow them to focus on training for three months, and since there is no work, they are converted to a leave of absence status with 75% of their wages paid."

Employment insecurity in the gaming industry is not a new issue. Whenever game development projects are canceled, the employees of the respective teams face 'team reassignment.' If employees cannot find work during this period, they face employment insecurity such as suspension or encouraged resignation. Last year, Pearl Abyss faced controversy over 'same-day encouraged resignation notices.'

In fact, according to the 'Labor Study of Game Producers' report released by the Korea Creative Content Agency in January last year, a survey of 1,000 game workers showed that 51.6% expected measures such as 'transfer placement, suspension, encouraged resignation, dismissal' due to project cancellations. The research team diagnosed, "As the industry has recently shifted to mobile games, the continuity of projects has seriously weakened, and employment insecurity issues are worsening."

Experts predict that recent salary increases for employees in the gaming industry will further intensify such employment conflicts. If the business does well, no problems arise, but if it performs poorly, companies have no choice but to reduce labor costs, leading to ongoing employment insecurity issues such as restructuring. Reckless hiring and lax project management, which have continued in the gaming industry from the past, also play a role.

Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society, pointed out, "This year, game companies uniformly raised salaries without preparation, but wages cannot be cut just because management worsens," adding, "Such labor-management conflicts will continue to arise in the future."

Editor's Note The goal of 'Game Dictionary' is to understand and clearly convey game-related issues every weekend. We always listen to incidents and various voices arising in games. Any tips or reports are always welcome.