Billion-Won Salaries and High Performance Bonuses
Shining Spotlight on Pangyo Game Industry
Chronic Job Insecurity Surfaces
Developers Seek Jobs Within Companies
"Move According to Conditions" Industry Characteristics Cause Disagreement
[Asia Economy Reporter Buaeri Boo] The Pangyo game industry, known as a "dream workplace" with billion-won annual salaries, high performance bonuses, and welfare paradises, is shaking up. Following the suspension incident at Nexon, there is a heated debate between calls to improve the chronic employment instability faced by game developers and opinions emphasizing the need to consider the unique nature of freely changing jobs based on salary and working conditions.
According to the game industry on the 9th, the Nexon labor union recently opposed the suspension of 16 employees. These were employees who had been waiting for reassignment for over a year. Developers unanimously say that employment instability issues such as reassignment and encouraged resignation have long been a practice in the domestic game industry.
A developer, Mr. A, working at a major domestic game company said, "Employment instability is considered too normal in the game industry." When a game project is canceled, the developer team, consisting of dozens of people, is effectively "blown up." These dozens of developers enter a "reassignment" status, and from that point, they must find a way to survive. Even though they were hired as regular employees, they submit resumes, self-introductions, and even portfolios to find jobs within the company. Developers agree that the chances of success are almost none. Mr. A lamented, "Basically, team leaders do not want reassigned employees," adding, "In this process, self-esteem drops and they suffer from severe stress."
The company states that sufficient opportunities have been provided and most have been reassigned to other duties. In Nexon's case, since August 2019, among 600 reassignment candidates, the majority have found jobs internally. A game company official emphasized, "Developers are ultimately merit-based," adding, "Even if a project is canceled, capable developers often get higher salaries when they move to other companies."
On the other hand, there are claims that many consider resignation after being forcibly assigned to unrelated tasks. Developer Mr. B, working at a top 10 domestic game company, revealed that after China's game license (panho) was blocked, 45 team members were placed in reassignment status. Currently, Mr. B is assigned to a "support organization," but this team helps other teams when they are short-handed and is not a development team. Mr. B said, "There is public opinion that it depends on developer ability, but the company unilaterally decides whether to proceed with projects," adding, "It is difficult to raise complaints due to reputation checks."
The average tenure of employees at large game companies is only 4 to 5 years. An industry insider said, "Sometimes developers are scouted for better conditions, and sometimes they are pushed out," adding, "Since developers move based on salary or working conditions, the reality of the game industry should not be viewed from a general perspective."
There are also opinions that game companies need to reorganize their internal personnel management systems. Cha Sang-jun, head of the Smilegate labor union branch, pointed out, "Although the game industry has grown rapidly, the internal personnel management system remains weak," adding, "Even though these companies generate over one trillion won in sales, they still maintain old methods." Professor Wi Jeong-hyun of Chung-Ang University's Department of Business Administration said, "From the company's perspective, they cannot pay salaries to employees who do not work," and pointed out, "Instead of relying on HR department assignments, it seems necessary to create an internal labor market within the company to adjust overall supply and demand."
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