NC Withdraws from Fandom Platform Business, Ultimately Implements Workforce Reallocation

[Asia Economy Reporter Seungjin Lee] NCSoft (hereafter NC), which sold the K-pop fandom platform 'Universe' to Dear U, a subsidiary of SM Entertainment, is conducting a personnel reallocation.

NC announced on the 2nd that it is currently running a reallocation program for about 70 Universe employees. In this regard, NC recently held a personnel briefing session for the Universe business unit staff.

An NC official explained, "We informed employees that if they choose to resign or leave the company before participating in the reallocation program and inquire about it, they will be paid severance pay equivalent to up to six months' salary."

The gaming industry, where projects operate on a project-by-project basis, runs many programs for reassignment after project termination. However, in reality, reallocation rarely occurs, and those targeted for reallocation are known to perceive it as a form of 'encouraged resignation.'

NC began the process of selling the fandom platform Universe last year after two years of business operation. Universe is a fandom platform operated by 'Klap,' an entertainment subsidiary in which NCSoft holds a 66.67% stake. Artists such as Kang Daniel, Monsta X, and The Boyz are affiliated. As of July last year, the global number of downloads surpassed 24 million.

However, NC judged that it would be difficult to close the gap with competing fandom platforms. Profitability also showed red flags. Klap recorded sales of 8.8 billion KRW and an operating loss of 300 million KRW in the third quarter of last year. Although it achieved a turnaround with an operating profit of 1.7 billion KRW in 2021, just one year after its establishment, it returned to losses from the first quarter of this year. Ultimately, NC decided to transfer the Universe business to Dear U, a subsidiary of SM Entertainment, and the service will end on the 17th.