Establishment of Two New Corporations NCQA and NCIDS
Kim Jinseop, QA Center Head, and Lee Jaejin, Former CEO of Woongjin ThinkBig, Appointed as Inaugural Representatives
NCSoft, which is promoting management efficiency, has spun off part of its organization by physically splitting two business divisions, embarking on a full-scale organizational restructuring.
On the 24th, NC held an extraordinary board meeting and announced the decision to split the company and establish two new companies.
The new companies are two unlisted corporations: NC QA COMPANY (tentative name) and NC IDS COMPANY (tentative name). The size of the spun-off organization is about 360 employees.
This split will be carried out through a simple physical split method, where 100% of the shares of the newly established companies are allocated. After the split, the capital of the surviving company will be KRW 10,977,010,000, and the capital of the new companies will be KRW 6 billion and KRW 7 billion, respectively. The surviving company, NC, will continue to operate the remaining business divisions excluding the split business divisions and remain a listed company.
‘NC QA’ is a company specializing in the QA (Quality Assurance) service business division. The existing NC QA Center will become independent as is. Its business areas include ▲ software quality assurance services and other related businesses ▲ computer programming, system integration and management ▲ information technology and computer operation-related services. It can be understood as an SI company similar to Samsung SDS or LG CNS. The CEO will be Kim Jin-seop, head of the NC QA Center.
‘NC IDS’ is a company specializing in the application software development and supply business division. It combines three departments: the existing IT Infrastructure Office, User Growth Platform Center, and Biz Solution Center. Its business areas include ▲ application software development and supply ▲ computer system integration consulting and construction ▲ system software development and supply. NC has recruited Lee Jae-jin, former CEO of Woongjin ThinkBig, as the CEO of this company.
NC expects that through this split, a management system capable of rapid and specialized decision-making for each business division will be established, and core competitiveness will also be strengthened. Earlier, on the 9th of last month, NC co-CEO Park Byung-moo emphasized the inevitability of the split during an online and offline briefing for all employees, stating, "Compared to similar companies in the same industry, NC has relatively many employees and a high concentration at headquarters. Having many functions concentrated at headquarters imposes limitations on efficient and rapid decision-making."
Employee opposition is also anticipated. The NC labor union ‘Uju Jeongbok’ announced earlier this month through a statement that they demand ▲ immediate withdrawal of the unilateral spin-off plan ▲ suspension of downsizing plans and communication with employees ▲ accountability of management, and have warned of collective action.
The split will be finalized at an extraordinary general meeting of shareholders on August 14. The split date for each new company is October 1.
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