Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Netmarble faces backlash from Woongjin Coway union
Members of the maintenance workers' union at Woongjin Coway display banners demanding Netmarble have an open discussion and guarantee their job security in front of the company's headquarters in Seoul, Oct. 29. / Yonhap
By Kwak Yeon-soo
By Kwak Yeon-soo
Netmarble is facing a backlash from Woongjin Coway Workers' Union for its takeover of Korea's largest household appliance rental firm as workers demand job security and better working conditions, according to industry officials Thursday.
According to the Korean Federation of Service Workers' Unions (KFSU), the union comprising of Coway's maintenance staffers took to the streets Tuesday and called on Korea's top mobile game developer to show commitment to open discussion.
The union's demands include “transparency” in Netmarble's purchase of a 25 percent stake in the company and guaranteeing job security for maintenance workers. It also expressed worries that the takeover may lead to massive layoffs.
“Woongjin Coway did nothing to provide better pay and job security the union has been demanding,” the union said in a statement.
“Thus, we demand the company's largest shareholder and new owner Netmarble to recognize us as directly employed staffers and show willingness to fairly compensate maintenance workforce.”
Earlier on Oct. 14, Netmarble was named the preferred bidder to acquire a stake in water rental firm valued at $1.3 billion.
The firm said it expects the deal would help generate stable cash flow amid slowing mobile gaming growth.
The union criticized Woongjin Coway's closed-door negotiations, saying that the company has attempted to sell off stakes disregarding the wages and benefits that the union has requested.
“The management owes us an apology and should promise the union's participation in the takeover process,” the union said.
Netmarble remains cautious over Woongjin Coway's protest.
“We're not in the position to comment on the issue at the moment because we're currently conducting a due diligence,” a Netmarble official said. “As far as we're concerned, Woongjin Coway and the employee union are discussing the matter at the moment.”
“The maintenance workers' protest in front of Netmarble's headquarters on Tuesday can be interpreted as a sign to express their strong, unified stance,” a Woongjin Coway official said.
“We've been in talks with the union for quite a while since it was established in July this year, discussing their job security and participation in the acquisition process.”
Woongjin Coway is currently the No. 1 player in the water purifier and air purifier rental market, and is estimated to have more than 7 million customers, with 6 million in Korea.
This is not the first time that maintenance workers have run a protest to more effectively deal with a possible layoff by Woongjin Group.
Their move came amid Woongjin Group's decision to buy a 22 percent stake in Coway, which used to be part of the group and has been under control of a private equity firm MBK Partners for the past six years. The group then acquired 3 percent more for 200 billion won.
In 2013, Woongjin sold its 30.9 percent stake in Coway to private equity fund MBK Partners to address its liquidity shortage.