Creating Employee-Owned Companies... Introduction of Transfer-Restricted Stock System
Incentives to Boost Work Motivation and Encourage Long-Term Service

[Asia Economy Reporter Park Hyungsoo] Mgame is paying its employees a bonus worth 6.3 billion KRW in treasury shares for the first time since its founding.

On the 20th, Mgame announced through the Financial Supervisory Service's electronic disclosure system that it decided to dispose of 535,000 treasury shares. The purpose of the disposal is "payment of employee bonuses."

The expected disposal amount is 6,286,250,000 KRW and will be completed by the 28th. The target stock price is based on the closing price on the day before the board resolution date (December 17). The shares will be transferred from Mgame's treasury stock account to the employees' stock accounts.

Mgame recently held a board meeting and passed a resolution to introduce a Restricted Stock Unit (RSU) system to use treasury shares for employee rewards. It is the first in the domestic gaming industry to proactively introduce a treasury stock compensation system for employees.

RSUs are a performance-based system that grants shares to employees as a reward. The company gives actual shares to employees who meet performance conditions. This differs from stock options, which grant the right to purchase shares at a predetermined price after a certain period.

Kwon Eui-hyung, CEO of Mgame, said, "We introduced this performance system to motivate employees and provide incentives for long-term service." He added, "Our goal is to create a virtuous cycle that strengthens employees' sense of ownership in the company, motivates them in their work, and leads to improved performance."

He also said, "All employees have been overcoming challenges steadily as Mgame grows," and "We will strive to build a company where employees are the owners."

Mgame signed a trust contract for acquiring treasury shares in March last year and acquired a total of 535,000 shares by June of the same year.